***Hubris Axiom [upon which Nobel prizes were won] : We can eradicate risk [with the new math, the new instruments ]. We can refine the eradication process ad infinitum [derivatives of derivatives of derivatives ]. A few tens of trillions of $$ of exposure—so what? We don’t want to be the first1st to bail—only wimps quit when they get their third consecutive $10M bonus at age 29. I got this because I’m smart—this was not repeat not luck; I deserved every damn penny. [Counter text: Fooled By Randomness—Nassim Nicholas Taleb]
***Quant primacy Too much faith in super-smart intellectuals [Reminds me to the point of dotting of the “i”s and crossing of the “t”s of David Halberstam’s The Best & The Brightest—on the Vietnam quagmire] If you’re not a 100% quant convert, you’re “old school” and held up to ridicule—even if you’re Warren Buffett.
***Step shift in complexity Fact is, “it” became incomprehensible. Connectedness [in general, global] totally new and, again, incomprehensible.
***Perception Is Everything Financial markets are, by design, a house of cards—e.g., basic idea is to take a dollar of deposits and lend 10 based thereupon, depending on the depositors not to withdraw all at once. Emotions rule as much on Wall Street as at the football stadium!!!!!! Ex p ectations are ever y thin g!!!!! Madness of crowds is just that—madness!!!!! It is axiomatic that house prices will rise and rise and rise—and then rise some more.
***Basics Rotten Mar y and Joe couldn’t have p aid the loan back if hell had frozen over—the y were not, sim p l y , creditworth y. The incentives were nutty—lend to anyone and everyone and collect the full commission when you book the loan and get fired if you don’t book it. [Message from In Search of Excellence, in another context, It’s the basics, stupid—Japan is killing us, circa 1980, because (1) their cars work and (2) they ask their workers how to make them even better.]
***Good Ideology Run Amok De-regulation = Holy. If de-regulation is good, then more is better.
***History Repeats Repeats Repeats Itself South Sea Bubble Tulips Etc Etc Etc S & L Junk bonds Dot-com Sub-prime TK TK TK
***Thank God for Paulson—It’d Be Worse Without Him.
***Black Swans Believe it: s%^& happens. [See Taleb once again— The Black Swan.] NB: Your res p onse to one or two black swans is y our life le g ac y—it’s easy to be a genius when the market is rising rising rising.
Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonom y and Entre p reneurshi p 4. Productivity Through Peo p le 5. Hands On , Value-Driven 6. Stick to the Knitting 7. Sim p le Form, Lean Staff 8. Simultaneous Loose-Tight Properties”
“ Breakthrough” 82* People! Customers! Action! Values! * In Search of Excellence
Enterprise * ** (*at its best): An emotional , vital , innovative , jo y ful , creative , entre p reneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others .** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners
… 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.
“ The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being .” —Robert Altman, Oscar acceptance speech
“ Leaders ‘ SERVE ’ people. Period.” —inspired by Robert Greenleaf
“ We Have Met the Enemy … Thank you, Howard (& Walt) and Lou & Ken …
“ If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game — it is the game .” —Lou Gerstner, Who Says Elephants Can’t Dance
Ken Kizer/VA 1997: “culture of cover-up that pervades healthcare” “Patient Safety Event Registry” … “looking for systemic solutions, not seeking to fix blame on individuals except in the most egregious cases. The good news was a thirt y -fold increase in the number of medical mistakes and adverse events that got reported.” “ National Center for Patient Safety Ann Arbor”
“ New technology, by itself, has little economic benefit. … The economic benefits arise not from innovation itself, but from the entrepreneurs who eventually discover ways to put innovation to practical use— and, most critically, from the organizational changes through which businesses reshape themselves to take advantage of new technology.” —Marc Levinson, The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger
When The “Enemy” Really Wins “ Lose Your Nemesis”: “ Obsessin g about y our com p etitors, tr y in g to match or best their offerin g s, s p endin g time each da y wantin g to know what the y are doin g , and/or measurin g y our com p an y a g ainst them—these activities have no g reat or winnin g outcome . Instead you are simply prohibiting your company from finding its own way to be truly meaningful to its clients, staff and prospects. You block your company from finding its own identity and engaging with the people who pay the bills. … Your competitors have never paid your bills and they never will.” —Howard Mann, Your Business Brickyard: Getting Back to the Basics to Make Your Business More Fun to Run* * Mr Mann also quotes Mike McCue, former VP/Technology at Netscape: “At Netscape the competition with Microsoft was so severe, we’d wake up in the morning thinking about how we were going to deal with them instead of how we would build something great for our customers. What I realize now is that y ou can never, ever take y our e y e off the customer. Even in the face of massive com p etition, don’t think about the com p etition. Literall y don’t think about them .”
“ I [will] not accept the explanation of a recession negatively affecting the [new] business. There are still people traveling. We just have to get them to stay in our hotel.” —Horst Schulze, on his new chain, Capella, from Prestige (06.08) The Return of History and the End of Dreams
“ You have to treat your employees like customers.” —Herb Kelleher, complete answer, upon being asked his “secrets 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 the Annual Meeting)
Thank you Ben & Norm, Ike , Charlie, George, Nelson, Ben and Delaware …
“ In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a simple brown suit and a fur cap. … Franklin’s miracle was that armed only with his canny personal charm and reputation as a scientist and philosopher, he was able to cajole a wary French government into lending the fledgling American nation an enormous fortune. … The enduring image of Franklin in Paris tends to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue affairs of state as rigorously as John Adams. When Adams joined Franklin in Paris in 1779, he was scandalized by the late hours and French lifestyle his colleague had adopted, says [Stacy Schiff, in A Great Improvisation] Adams was clueless that it was through the dropped hints and seemingly offhand remarks at these salons that so much of French diplomacy was conducted. … Like the Beatles arriving in America, Franklin aroused a fervor—his face appeared on prints, teacups and chamber pots. The extraordinary popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could ignore the enthusiasm that had won over both the nobility and the bourgeoisie. …” Source: “In Paris, Taking the Salons By Storm: How the Canny Ben Franklin Talked the French into Forming a Crucial Alliance,” U.S. News & World Report , 0707.08
The ragtag and victory-less Continental Army was retreating, George Washington notwithstanding. For the Americans, finding an ally was a life or death proposition. Short, fat old Benjamin Franklin was our man in Paris. Short, fat and old though he may have been, he was a Charmer. He won the hearts and devotion of the ladies of high society with his mastery of Tea & Flattery. The Americans eked out a success at Saratoga which Franklin turned into an epic victory—and the besotted ladies convinced their mighty husbands to get behind the Americans. The rest, as they say, is history. The launchpad for Gulf War I was Saudi Arabia. Despite the Saudis need to have Iraq’s Kuwaiti incursion reversed, the Kingdom was touchy about the massive American military presence on their Holy soil. Allied supreme commander Norm Schwarzkopf says, tongue only half in cheek, that his principal contribution to the war effort was nightly marathon sessions sipping tea with the Crown Prince. The point: No matter how weighty the cause, “giving good tea”—an incredible and expensive (in terms of time) investment in key relationships is typically invaluable and of decisive strategic importance. Message: Master the Art of Tea—metaphorically at least—and make it in to the history books.
“ Allied commands depend on mutual confidence [and this confidence] is gained, above all through the develo p ment of friendshi p s .” — General D.D. Eisenhower, Armchair General * (05.08) *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command.”
Do tea. Make friends. Could it be that simple? At some level, the answer is yes. You need the troops. And you need the guns. But as D-Day approached in 1944, you mostly needed to have a modicum of peace among Churchill, Montgomery, Patton, Bradley and Roosevelt. As Schwarzkopf kept the Saudis on board through tea, Ike’s affability, for which he was often criticized or dismissed or disdained, kept the British and Americans from killing each other long enough to kill the Germans.
George Crile ( Charlie Wilson’s War ) on Charlie Wilson: “The way things normally work, if you’re not Jewish you don’t get into the Jewish caucus, but Charlie did. And if you’re not black you don’t get into the black caucus. But Charlie plays poker with the black caucus; they had a game, and he’s the only white guy in it. The House, like any human institution, is moved by friendships, and no matter what people might think about Wilson’s antics, they tend to like him and enjoy his company.”
The 95% Factor * : “What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bondin g is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table *95% of Kohlrieser’s negotiations ended successfully
“ I am a dispenser of enthusiasm.” —Ben Zander
“ eighty percent of success is showing up.” — Woody Allen
Delaware was the smallest state in the Union in 1787 as the process of writing the Constitution got underway. For a number of reasons, some states, such as New Hampshire, were absent from the Convention, members of various delegations were away as much as present (e.g., Alexander Hamilton). In any event, about thirty Delegates were present and at work at any point in time. States could decide on the size of their delegations, and Delaware chose five—a very large number. Moreover, wee Delaware’s five never missed a day’s work and were in their seats gavel to gavel. Needless to say, wee Delaware had a wildly disproportionate impact on the Convention and the document itself. In a nutshell, Delaware’s secret: Show up! (I like this example because it illustrates the impact of this “trivial” idea-tactic-strategy, available to all of us all of the time, in the most Monumental of affairs.)
General David Petraeus’ “White lines along the road”: “ Secure and serve the population. Live among the people. Promote reconciliation. Move mounted, work dismounted; situational awareness can only be achieved by operating face-to-face, not separated by ballistic glass. Walk . *” — David Petraeus, Men’s Journal (06.08) * “I love that last one for its simplicity.” —DP
5,000 miles for a 5-minute face-to -face meeting
MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank . … It is essential that [those setting up a new village Branch] have no office and no p lace to sta y. The reason is to make us as different as possible from government officials .” Source: Muhammad Yunus, Banker to the Poor
“… Time and s p ace are annihilated b y steam . … Oh, this constant locomotion, my body & everything in motion. Steamboats, Cars, & hotels all crammed & crowded full the whole population seems in motion & in fact as I pass along with Lightening speed & cast my eye on the distant objects, they all seem in a whirl nothing appearing permanent even the trees are waltzing, the mind too goes with all this, it speculates, theorizes, & measures all things by locomotive speed, where will it end .” —Asa Whitney, first to formally propose transcontinental railroad to Congress, diary entry, 1844 , from David Hayward Bain, Empire Express: Building the First Transcontinental Railroad
“ For Real Globalization, Look at Ancient Rome” “There is nothing new about a global world. We were living in one 2,000 years ago. … The Roman in the street ate bread baked with wheat grown in North Africa or Egypt, and fish that had been caught and dried near Gibraltar, He cooked with North African oil in pots and pans of cooper mined in Spain, ate off dishes fired in French kilns, drank wine from Spain or France. … The Roman of wealth dressed in garments of wool from Miletus or linen from Egypt; his wife wore silks from China, adorned herself with diamonds and pearls from India, and made up with cosmetics from South Arabia. … He lived in a house whose walls were covered with colored marble veneer quarried in Asia Minor; his furniture was of Indian ebony or teak inlaid with African ivory.” —Peter Jones and Lionel Casson, The Spectator , 0524.08
While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I happened across the latest Harvard Business Review , on the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive position.” It referred to a feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several occasions dating back 15 years. I’m sure this article is good, too—though I didn’t read it. In fact it triggered a furious negative “Tom reaction” as my wife calls it. Of course I believe you should worry about your “competitive position.” But instead of obsessing on competitive position and other abstractions, as the B-schools and consultants would always have us do, I instead wondered about some “practical stuff” which I believe is more important to the short- and long-term health of the enterprise, tiny or enormous.
1. Have you in the last 10 days … visited a custome r? 2. Have you called a customer … TODAY ? 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours ? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation ? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)
1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY ? * * *
Want to “map” your “competitive position”? Start by going to visit a customer … ASAP! Or at least calling! You’ll find the other 48 items on the “Have you … ?” list at #5.2.2.
11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps? 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically you can do to remove a hurdle ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.) 13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a milestone fanatic?) 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly reward the telling of difficult truths .) 15. Have you installed in your tenure a very comprehensive customer satisfaction scheme for all internal customers? (With major consequences for hitting or missing the mark.) 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external customers? 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the next eight hours , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action? 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations? 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next fourteen days ?
The director of staff services at the giant financial services firm, UniCredit Group, installed the most thorough internal customer satisfaction measures scheme I have seen—with exceptional rewards for those who make the grade with their internal customers.
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
X =XFX* * Excellence = Cross-functional Excellence
“ 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
In How Doctors Think , Harvard Med doc Jerome Groopman tells us that the best way to get a fix on what ails a patient is to get the patient talking openly about his-her problem. Great. But the research shows that docs, on average, leap to a conclusion and interrupt their patients after … 18 seconds. (Docs are hardly alone. This is a disease present in almost all specialists and professionals. “Listening” for a professional invariably means … talking.)
Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE - MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM . * ** *Watergate, M Stewart, BR **And: PERCEPTION IS ALL THERE IS!
Success … Consult everyone on everything “Thank you” note carpet bombing Source: Roger Rosenblatt, Rules for Aging
“ The four most important words in any organization are … ‘What do you think?’ ” Source: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08)
“ Buy in”- “Ownership”-Authorial bragging rights-“Born again” Champion = One Line of Code !
“ You can make more friends in two months b y becomin g interested in other p eo p le than you can in two years by trying to get other people interested in you.” —Dale Carnegie
TP: People are always ready to tell their story! See also: “The story leaner’s edge” (Steve Farber) “The dream manager” (Matthew Kelly)
"Trust the development experts—all seven billion of them.” —headline, Financial Times, 0529.08, to an article by development guru William Easterly, commenting negatively on the World Bank Growth Commission’s recent report that concludes, in effect, “ trust the World Bank experts”
??????? “Success doesn’t depend on the number of people you know; it depends on the number of people you know in hi g h 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!”
Loser: “He’s such a suck-up!” Winner: “He’s such a suck-down.”
George Crile (Charlie Wilson’s War) on Gust Avrakotos’ strategy: “He had become something of a legend with these people who manned the underbelly of the Agency [CIA].”
“ Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay
The Manager’s Book of Decencies : How Small /gestures Build Great Companies. —Steve Harrison, Adecco
“ It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say .” Sara Lawrence-Lightfoot, Respect
Planetree : A Radical Model for New Healthcare/Healing/ Wellness Excellence
The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
Press Ganey Assoc : 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directl y related to Staff Interaction PS directl y 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 interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information
Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc.) Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
3. Healing Partnerships: The Importance of Including Friends and Family
The Patient-Famil y Experience “ Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
Care Partner Programs (IDs, discount meals, etc.) Unrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”) Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits (POP: Patients’ Own Pets) Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
Griffin : redesign chapel (waterfall, quiet music, open prayer book) Other : music, flowers, portable labyrinth Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
6. Human Touch: The Essentials of Communicating Caring Through Massage
Mid-Columbia Medical Center/Center for Mind and Bod y Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”) Infant massage Staff massage (“caring for the caregivers”) Healing environments: chemo! Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
Griffin : Music in the parking lot; professional musicians in the lobby (7/week, 3-4hrs/day) ; 5 pianos ; volunteers (120-140 hrs arts & entertainment per month). Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
8. Integrating Complementary and Alternative Practices into Conventional Care
Griffin IMC/Integrative Medicine Center Massage Acupuncture Meditation Chiropractic Nutritional supplements Aroma therapy Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
9. Healing Environments: Architecture and Design Conducive to Health
“ Planetree Look” Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology .. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
Access to nurses station: “Happen to” vs “Happen with” Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
“ It was the goal of Planetree to help patients not only get well faster but also to stay well longer.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel (Planetree Alliance/Griffin Hospital)
Care!/Love!/Spirit! Self-Control! Connect!/learn!/ involve!/Engage! Understanding!/Growth! De-stress!/heal! Whole patient & family & friends! be well!/stay well!
“ Planetree is about human beings caring for other human beings.” — Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)
Griffin Hos p ital/Derb y CT (Planetree Alliance “HQ”) Results : Financially successful. Expanding programs-physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. —“Five-Star Hospitals,” Joe Flower, strategy+business (#42)
9 July 2008/HealthLeaders Media 2008 Top Leadership Team in Healthcare: Griffin Hospital
“ Forget China , India and the Internet : Economic Growth Is Driven by Women .” —Headline, Economist , April 15, 2006, Leader, page 14
“ AS LEADERS, WOMEN RULE : New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men ?
!!!!!!!!!!!!!!!!! “ People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America
And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services * (*Integrated Systems Services Corp.): $ 55B
“ THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008
A January 2008 BusinessWee k cover story informed us that Schlumberger may well take over the world: “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.” In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to production”—that is, as BusinessWeek put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)
“ 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)
I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by Best Buy. IV. Flagship of Best Buy Wholesale “Solutions” Strategy Makeover.
Hu g e : Customer Satisfaction versus Customer Success
The Value-added Ladder/ TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials
“ The business of selling is not just about matching viable solutions to the customers that require them. It’s 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.” * (*E.g.: CRM failure rate/Gartner: 70 %) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
The Value-added Ladder/ TRANSFORMATION Customer Success through Im p lemented Gamechanging Solutions* Services Goods Raw Materials * Subject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organizational Psychology)
Are you the … “ Princi p al En g ine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?
HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healin g -Services Team (who happens to be a techie)
“ Purchasing Officer” Thrust #1 : Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner-Leader in Lifetime Value-added Maximization ? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
Ideal “finance staffer”: Full-scale “business partner” [CFO?] to the/each department she serves.
Ideal “finance staffer”: **Full-scale “business partner” [CFO?] to the/each department she serves. **Not cop—obsessed instead with value-added **Integration first, “stovepipe” secondary **MBWA/bigtime **Networker to the rest of Finance
Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
Jim’s Group : Jim Penman.* 1984: Jim’s Mowing. 2006: Jim’s Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006
etc. PRSX/Paragon Railcar Salvage* *Salvaged railcars into bridges, etc.
The Red Carpet Store Joel Resnick/Flemington NJ (referenced in Fame Junkies )
Or … Goldmann Produktions (11/50%/$5M/”dip and coat,” expensive pigments vs “through coloring,” fades Bekro Chemie)
Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS
* Lived in same town all adult life *First generation that’s wealthy/ no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull- normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door , Thomas Stanley & William Danko
“ The growth and success of women-owned businesses is one of the most profound changes taking place in the business world today.” — Margaret Heffernan, How She Does It
94 % of loans to … women * * M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner
“ 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
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. The y found that none of the lon g -term survivors mana g ed to out p erform the market. Worse, the lon g er com p anies had been in the database, the worse the y did .” —Financial Times
“ Data drawn from the real world attest to a fact that is beyond our control: Ever y thin g in existence tends to deteriorate .” —Norberto Odebrecht, Education Through Work
“ Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event
Built to Last vs Built to Change / Rock the World
TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)
Warren Bennis & Patricia Ward Biederman/ Organizing Genius : “Great Groups Don’t Last Very Long !”
The “Unlucky Thirteen” Guru Gaffes: Bi g companies! Public companies! “ Cool ” industries! Stabilit y! Famous CEOs! “ Hard ” stuff! Plans ! “ Success ”! Men ! Youn g! Incrementalism -Kaizen Minimization ! Uni f ormit y!
The “Lucky Thirteen”: SME s ! Private companies! “Dull” industries! Churn! laudable CEOs! “Soft” stuff! Excellence! Action-Execution! Women! Boomers-Geezers! Imagination Unbound! Accentuate the Positive! Individuality!
Black Swan: This is how you earn your pay !* ** *See: The Black Swan: The Impact of the Highly Improbable , Nassim Nicholas Taleb **WSC: “When the seas are calm all ships alike show mastership in sailing.”
“ This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells . You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters , by John Masters, Canadian O & G wildcatter
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.
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”
“ We have a ‘strategic plan.’ It’s called doing things .” — Herb Kelleher
“ We made mistakes, of course. Most of them were omissions we didn’t 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, we’re 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 plan — for months .” —Bloomberg by Bloomberg
Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” —Michael Schrage
“ Experiment fearlessly” Source: BW 0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1
“ You miss 100 % of the shots you never take.” —Wayne Gretzky
“ Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
“ Fail . Forward. Fast.” High Tech CEO, Pennsylvania
Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer …
Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “ remember to tuck the shower curtain inside the bathtub ”
Nudge. Sway. K.I.S.S. *Keep It Simple, Stupid
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 **1/3 rd 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)
**Docs, nurses make own checklists on whatever process-procedure they choose **Within weeks , average stay in ICU down 50% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
“ Everything matters” -80% Source: Nudge, Richard Thaler and Cass Sunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airport
Thank you , Anthelme Brillat-Savarin and Ludwig Feuerbach … * *”You are what you eat”
“ 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 Dream Manager —Matthew Kelly “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.”
Globalization1.0: Countries globalizing (1492-1800) Globalization2.0: Companies globalizing (1800-2000) Globalization3.0 (2000+) : Individuals collaborating & competing globally Source: Tom Friedman/ The World Is Flat
“ One of the defining characteristics [of the change] is that it will be less driven by countries or corporations and more driven by real people. It will unleash unprecedented creativity, advancement of knowledge, and economic development. But at the same time, it will tend to undermine safety net systems and penalize the unskilled.” —Clyde Prestowitz, Three Billion New Capitalists
“ If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired
Muhammad Yunus: “ All human beings are entrepreneurs . When we were in the caves we were all self-employed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006
“ You are the storyteller of your own life, and you can create your own legend or not.” —Isabel Allende
“ Nobody gives you power. You just take it.” — Roseanne
New Work SurvivalKit.2008 1. MASTERY! (Best/Absurdly Good at Something! ) 2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects! ) 3. A “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty) 5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6. CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring “interesting you” to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer) 12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)
Thriving in 24/7 (Sally Helgesen) *START AT THE CORE. Nimbleness only possible if we “locate our inner voice,” take regular inventory of where we are. *LEARN TO ZIGZAG. Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism. *CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your market. Run your own business. *WEAVE A STRONG WEB OF INCLUSION. Build your own support network. Master the art of “looking people up.”
Personal “Brand Equity” Evaluation <ul><ul><li>My current Project is challenging me … </li></ul></ul><ul><ul><li>New things I’ve learned in the last 90 days include … </li></ul></ul><ul><ul><li>I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing]. </li></ul></ul><ul><ul><li>My public “recognition program” consists of … </li></ul></ul><ul><ul><li>Additions to my Rolodex in the last 90 days include … </li></ul></ul><ul><ul><li>My resume is discernibly different from last year’s </li></ul></ul><ul><ul><li>at this time … </li></ul></ul>
“ The only thing you have power over is to get good at what you do. That’s all there is; there ain’t no more!” —Sally Field
“ When was the last time you asked, ‘ What do I want to be ?’ ” —Sara Ann Friedman, Work Matters
“ This is the true joy of Life, the being used for a purpose recognized by yourself as a mighty one … the being a force of Nature instead of a feverish, selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy.” —GB Shaw/ Man and Superman
“ Tell me, what is it you plan to do with your one wild and precious life?” —Mary Oliver
Joe J. Jones 1942 – 2008 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!
Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “ remember to tuck the shower curtain inside the bathtub ”
“ 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 the Annual Meeting)
3H: Howard, Hilton, Herb ** Stay in touch! ** Sweat the details! ** It’s the people, stupid!
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 can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)
"Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting ‘ GERONIMO!’ ” — Bill McKenna, professional motorcycle racer ( Cycle magazine 02.1982)