1. Tom Peters’Tom Peters’
EXCELLENCEEXCELLENCE !!
““THE WORKS”THE WORKS”
A Half-Century’s Reflections/1966-2016A Half-Century’s Reflections/1966-2016
ChapterChapter FOURFOUR::
1B1: (1B1: ( REALLYREALLY) FIRST THINGS) FIRST THINGS
BEFORE FIRST THINGSBEFORE FIRST THINGS
01 January 201601 January 2016
(10+ years of presentation slides at(10+ years of presentation slides at tompeters.comtompeters.com))

2. Contents/“The Works”/1966-2016/EXCELLENCEContents/“The Works”/1966-2016/EXCELLENCE !!
ChapterChapter ONEONE:: Execution/The “All-Important Last 95%”Execution/The “All-Important Last 95%”
ChapterChapter TWOTWO:: EXCELLENCE (Or Why Bother at All?)EXCELLENCE (Or Why Bother at All?)
ChapterChapter THREETHREE:: The “Strategy First” MythThe “Strategy First” Myth
ChapterChapter FOURFOUR:: (REALLY) First Things Before First Things(REALLY) First Things Before First Things
ChapterChapter FIVEFIVE:: 34 BFOs/Blinding Flashes of the Obvious34 BFOs/Blinding Flashes of the Obvious
ChapterChapter SIXSIX:: Putting People (REALLY!) FirstPutting People (REALLY!) First
ChapterChapter SEVENSEVEN:: Tech Tsunami/Software Is Eating the World++Tech Tsunami/Software Is Eating the World++
ChapterChapter EIGHTEIGHT:: People First/A Moral Imperative Circa 2016People First/A Moral Imperative Circa 2016
ChapterChapter NINENINE:: Giants Stink/Age of SMEs/Be The Best,Giants Stink/Age of SMEs/Be The Best,
It’s the Only Market That’s Not CrowdedIt’s the Only Market That’s Not Crowded
ChapterChapter TENTEN:: Innovate Or Die/W.T.T.M.S.W./Innovate Or Die/W.T.T.M.S.W./
Whoever Tries The Most Stuff Wins++Whoever Tries The Most Stuff Wins++
ChapterChapter ELEVENELEVEN:: Nine Value-added StrategiesNine Value-added Strategies
ChapterChapter TWELVETWELVE:: Value Added/1Value Added/1STST
Among Equals/DESIGNAmong Equals/DESIGN
MINDEDNESSMINDEDNESS
ChapterChapter THIRTEENTHIRTEEN:: The “PSF”/Professional Service Firm “Model”The “PSF”/Professional Service Firm “Model”
as Exemplar/“Cure All”as Exemplar/“Cure All”
ChapterChapter FOURTEENFOURTEEN:: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”
ChapterChapter FIFTEENFIFTEEN:: Women Are Market #1 For Everything/Women Are Market #1 For Everything/
Women Are the Most Effective LeadersWomen Are the Most Effective Leaders
ChapterChapter SIXTEENSIXTEEN:: Leadership/46 Scattershot TacticsLeadership/46 Scattershot Tactics
ChapterChapter SEVENTEENSEVENTEEN:: Avoid Moderation!/PursueAvoid Moderation!/Pursue
““Insanely Great”/Just Say “NO!” to NormalInsanely Great”/Just Say “NO!” to Normal
Appendix:Appendix: Library of Best QuotesLibrary of Best Quotes

3. This—circa January 2016—is my best shot. It took 50 years to write!This—circa January 2016—is my best shot. It took 50 years to write!
(From 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—(From 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—
my 1st “management” job—to today, 2016.) It is …my 1st “management” job—to today, 2016.) It is … “THE WORKS.”“THE WORKS.” THETHE
WORKS is presented in PowerPoint format—but it includes 50,000++WORKS is presented in PowerPoint format—but it includes 50,000++
words of annotation, the equivalent of a 250-page book.words of annotation, the equivalent of a 250-page book.
The times are nutty—and getting nuttier at an exponential pace. I haveThe times are nutty—and getting nuttier at an exponential pace. I have
taken into account as best I can (there really are no “experts”) thetaken into account as best I can (there really are no “experts”) the
current context. But I have given equal attention to more or less eternalcurrent context. But I have given equal attention to more or less eternal
(i.e., human) verities that will continue to drive organizational(i.e., human) verities that will continue to drive organizational
performance and a quest for EXCELLENCE for the next several years—andperformance and a quest for EXCELLENCE for the next several years—and
perhaps beyond. (Maybe this bifurcation results from my odd adult lifeperhaps beyond. (Maybe this bifurcation results from my odd adult life
circumstances: 30 years in Silicon Valley, 20 years in Vermont.)circumstances: 30 years in Silicon Valley, 20 years in Vermont.)
Enjoy.Enjoy.
Steal.Steal.
P-L-E-A-S-E try something, better yet several somethings.* ** *** ****P-L-E-A-S-E try something, better yet several somethings.* ** *** ****
**********
*Make no mistake …*Make no mistake … THISTHIS ISIS AA 1717--CHAPTERCHAPTER BOOKBOOK … which happens to… which happens to
be in PowerPoint format; I invite you to join me in this unfinished—half century to datebe in PowerPoint format; I invite you to join me in this unfinished—half century to date
—journey.—journey.
**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.**My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins.
***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his
most recent book). The point is not “resilience” in the face of change;most recent book). The point is not “resilience” in the face of change;
that’s reactive. Instead the idea is proactive—literally “getting off ” on the madnessthat’s reactive. Instead the idea is proactive—literally “getting off ” on the madness
per se; perhaps I somewhat anticipated this with my 1987 book,per se; perhaps I somewhat anticipated this with my 1987 book, Thriving on ChaosThriving on Chaos ..
****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g.,****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g.,
I have learned a great deal from my 125K+ twitter followers; that is, some fraction ofI have learned a great deal from my 125K+ twitter followers; that is, some fraction of
this material is “crowdsourced.”this material is “crowdsourced.”
********** I am not interested in providing a “good presentation.” I amI am not interested in providing a “good presentation.” I am
interested in spurring practical action. Otherwise, why waste your time—interested in spurring practical action. Otherwise, why waste your time—
or mine?or mine?

4. EpigraphsEpigraphs
““Business has to give people enriching, rewarding lives …Business has to give people enriching, rewarding lives …
or it's simply not worth doing.”or it's simply not worth doing.” —Richard Branson—Richard Branson
““Your customers will never be any happierYour customers will never be any happier
than your employees.”than your employees.” —John DiJulius—John DiJulius
““We have a strategic plan. It’s called ‘doing things.’ ”We have a strategic plan. It’s called ‘doing things.’ ” —Herb Kelleher—Herb Kelleher
““You miss 100% of the shots you never take.”You miss 100% of the shots you never take.” —Wayne—Wayne GretzkyGretzky
““Ready. Fire. Aim.”Ready. Fire. Aim.” —Ross Perot—Ross Perot
““ExecutionExecution isis strategy.”strategy.” —Fred Malek—Fred Malek
““Avoid moderation.”Avoid moderation.” —Kevin Roberts—Kevin Roberts
““I’m not comfortable unless I’m uncomfortable.”I’m not comfortable unless I’m uncomfortable.” —Jay Chiat—Jay Chiat
““It takes 20 years to build a reputation and five minutes to ruin it.”It takes 20 years to build a reputation and five minutes to ruin it.”
——John DiJulius on social mediaJohn DiJulius on social media
““Courtesies of a small and trivial character are the ones whichCourtesies of a small and trivial character are the ones which
strike deepest in the grateful and appreciating heart.”strike deepest in the grateful and appreciating heart.” —Henry Clay—Henry Clay
““You know a design is cool when you want to lick it.”You know a design is cool when you want to lick it.” —Steve Jobs—Steve Jobs
““This will be the women’s century.”This will be the women’s century.” —Dilma Rousseff—Dilma Rousseff
““Be the best. It’s the only market that’s not crowded.”Be the best. It’s the only market that’s not crowded.” —George Whalin—George Whalin

5. First Principles. Guiding Stars. Minimums.First Principles. Guiding Stars. Minimums.
**EXECUTION! The “Last 99%.”EXECUTION! The “Last 99%.”
GET IT (Whatever) DONE.GET IT (Whatever) DONE.
**EXCELLENCE. Always. PERIOD.EXCELLENCE. Always. PERIOD.
**People REALLY First! Moral Obligation #1.People REALLY First! Moral Obligation #1.
**EXPONENTIAL Tech Tsunami.EXPONENTIAL Tech Tsunami.
GET OFF ON CONTINUOUS UPHEAVALS!GET OFF ON CONTINUOUS UPHEAVALS!
**Innovate or DIE!Innovate or DIE!
WTTMSW/Whoever Tries The Most Stuff Wins!WTTMSW/Whoever Tries The Most Stuff Wins!
**Women Buy (EVERYTHING)!Women Buy (EVERYTHING)!
Women Are the Best Leaders! Women RULE!Women Are the Best Leaders! Women RULE!
**Oldies Have (All of) the Market Power!Oldies Have (All of) the Market Power!
**DESIGN Matters! EVERYWHERE!DESIGN Matters! EVERYWHERE!
**Maximize TGRs!/Things Gone RIGHT!Maximize TGRs!/Things Gone RIGHT!
**SMEs, Age of/“Be the Best,SMEs, Age of/“Be the Best,
It’s the Only Market That’s Not Crowded”It’s the Only Market That’s Not Crowded”
**Moderation KILLS!Moderation KILLS!

6. NEW WORLD ORDERNEW WORLD ORDER ??!!
0810/2011:0810/2011:
Apple > ExxonApple > Exxon **
0724/2015:0724/2015:
Amazon > WalmartAmazon > Walmart ****
*Market capitalization; Apple became*Market capitalization; Apple became #1#1 in the world.in the world.
**Market capitalization; Walmart is a “Fortune**Market capitalization; Walmart is a “Fortune 11””
company—company—
the biggest in the world by sales.the biggest in the world by sales.

7. Phew.Phew.

8. Contents/“The Works”/1966-2016/EXCELLENCEContents/“The Works”/1966-2016/EXCELLENCE !!
ChapterChapter ONEONE: Execution/The “All-Important Last 95%”: Execution/The “All-Important Last 95%”
ChapterChapter TWOTWO: EXCELLENCE (Or Why Bother at All?): EXCELLENCE (Or Why Bother at All?)
ChapterChapter THREETHREE: The “Strategy First” Myth: The “Strategy First” Myth
ChapterChapter FOURFOUR: (REALLY) First Things Before First Things: (REALLY) First Things Before First Things
ChapterChapter FIVEFIVE: 34 BFOs/Blinding Flashes of the Obvious: 34 BFOs/Blinding Flashes of the Obvious
ChapterChapter SIXSIX: Putting People (REALLY!) First: Putting People (REALLY!) First
ChapterChapter SEVENSEVEN: Tech Tsunami/Software Is Eating the World++: Tech Tsunami/Software Is Eating the World++
ChapterChapter EIGHTEIGHT: People First/A Moral Imperative Circa 2016: People First/A Moral Imperative Circa 2016
ChapterChapter NINENINE: Giants Stink/Age of SMEs/Be The Best,: Giants Stink/Age of SMEs/Be The Best,
It’s the Only Market That’s Not CrowdedIt’s the Only Market That’s Not Crowded
ChapterChapter TENTEN: Innovate Or Die/W.T.T.M.S.W./: Innovate Or Die/W.T.T.M.S.W./
Whoever Tries The Most Stuff Wins++Whoever Tries The Most Stuff Wins++
ChapterChapter ELEVENELEVEN: Nine Value-added Strategies: Nine Value-added Strategies
ChapterChapter TWELVETWELVE: Value Added/1: Value Added/1STST
Among Equals/DESIGNAmong Equals/DESIGN
MINDEDNESSMINDEDNESS
ChapterChapter THIRTEENTHIRTEEN: The “PSF”/Professional Service Firm “Model”: The “PSF”/Professional Service Firm “Model”
as Exemplar/“Cure All”as Exemplar/“Cure All”
ChapterChapter FOURTEENFOURTEEN: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’”
ChapterChapter FIFTEENFIFTEEN: Women Are Market #1 For Everything/: Women Are Market #1 For Everything/
Women Are the Most Effective LeadersWomen Are the Most Effective Leaders
ChapterChapter SIXTEENSIXTEEN: Leadership/46 Scattershot Tactics: Leadership/46 Scattershot Tactics
ChapterChapter SEVENTEENSEVENTEEN: Avoid Moderation!/Pursue: Avoid Moderation!/Pursue
““Insanely Great”/Just Say “NO!” to NormalInsanely Great”/Just Say “NO!” to Normal
Appendix: Library of Best QuotesAppendix: Library of Best Quotes

9. ChapterChapter FOURFOUR
1B1: (1B1: (REALLYREALLY))
11stst
ThingsThings
Before 1Before 1stst
ThingsThings

10. 1B11B1: (REALLY) First Things Before First: (REALLY) First Things Before First
ThingsThings
1.1. 11stst
line supervisorsline supervisors are Key #1 toare Key #1 to
organizational effectiveness—and weorganizational effectiveness—and we
invariably (waaaay) underplay theirinvariably (waaaay) underplay their
collective importance.collective importance.
2.2. XFX/Cross-Functional EXCELLENCEXFX/Cross-Functional EXCELLENCE ..
Poor “XFX” is the principle element in thePoor “XFX” is the principle element in the
delay of everything—and the answer is notdelay of everything—and the answer is not
primarily sexy software systems.primarily sexy software systems.
3.3. LISTENING.LISTENING. You might go so far as toYou might go so far as to
say “Listening IS Strategy.” I’d go that far!say “Listening IS Strategy.” I’d go that far!
And turning everyone into a “listeningAnd turning everyone into a “listening
professional” is not a stretch of theprofessional” is not a stretch of the
imagination.imagination.
4.4. MeetingsMeetings, like it or not, are “what we, like it or not, are “what we

11. In 2012, I published my “Mother Of All Presentations.” ItIn 2012, I published my “Mother Of All Presentations.” It
had 23 parts and 4,096 slides. The first several partshad 23 parts and 4,096 slides. The first several parts
were titled “(REALLY) First Things Before First Things”—were titled “(REALLY) First Things Before First Things”—
these were critical ideas/contributions to EXCELLENCEthese were critical ideas/contributions to EXCELLENCE
that are either overlooked entirely or found in nooks andthat are either overlooked entirely or found in nooks and
crannies of presentations. Because of their importance, Icrannies of presentations. Because of their importance, I
decide to showcase them.decide to showcase them.
As I now in 2016 release my major collection—THEAs I now in 2016 release my major collection—THE
WORKS—I decided to resurrect these SuperItems, whichWORKS—I decided to resurrect these SuperItems, which
are more important than ever—my shorthand for “firstare more important than ever—my shorthand for “first
things before first things” isthings before first things” is 1B11B1. Combining these. Combining these
items is a new idea, but I have not updated theitems is a new idea, but I have not updated the
“substance”—said substance seems to have withstood“substance”—said substance seems to have withstood
the test of time, at least at the 3-year mark.the test of time, at least at the 3-year mark.
These ideas are of surpassing importance.These ideas are of surpassing importance.
They are usually treated as secondary.They are usually treated as secondary.
Each one can readily be translated into action steps.Each one can readily be translated into action steps.
Watchawaitinfor?Watchawaitinfor?

12. 4.14.1 FIRST-LINEFIRST-LINE
SUPERVISORS ARESUPERVISORS ARE
DETERMINANTDETERMINANT #1#1 OFOF
ORGANIZATIONALORGANIZATIONAL
EFFECTIVENESSEFFECTIVENESS

13. 1B11B1: (REALLY) First Things Before First: (REALLY) First Things Before First
ThingsThings
1.1. 11stst
line supervisorsline supervisors are Key #1 toare Key #1 to
organizational effectiveness—and weorganizational effectiveness—and we
invariably (waaaay) underplay theirinvariably (waaaay) underplay their
collective importance.collective importance.
2.2. XFX/Cross-Functional EXCELLENCEXFX/Cross-Functional EXCELLENCE ..
Poor “XFX” is the principle element in thePoor “XFX” is the principle element in the
delay of everything—and the answer is notdelay of everything—and the answer is not
primarily sexy software systems.primarily sexy software systems.
3.3. LISTENING.LISTENING. You might go so far as toYou might go so far as to
say “Listening IS Strategy.” I’d go that far!say “Listening IS Strategy.” I’d go that far!
And turning everyone into a “listeningAnd turning everyone into a “listening
professional” is not a stretch of theprofessional” is not a stretch of the
imagination.imagination.
4.4. MeetingsMeetings, like it or not, are “what we, like it or not, are “what we

14. If the regimental commander lost most ofIf the regimental commander lost most of
his 2nd lieutenants and 1st lieutenantshis 2nd lieutenants and 1st lieutenants
and captains and majors, it would be aand captains and majors, it would be a
tragedy.tragedy. IF HE LOST HISIF HE LOST HIS
SERSERGGEANTS ITEANTS IT
WOULD BE AWOULD BE A
CATASTROPHECATASTROPHE.. The ArmyThe Army
and the Navy are fully aware that successand the Navy are fully aware that success
on the battlefield is dependent to anon the battlefield is dependent to an
extraordinary degree on its Sergeants andextraordinary degree on its Sergeants and
Chief Petty Officers. Does industry haveChief Petty Officers. Does industry have
the same awareness?the same awareness?

15. This is, more or less, no exaggeration.This is, more or less, no exaggeration.
I’ve never had a military personI’ve never had a military person
disagree, even among “disposable”disagree, even among “disposable”
lieutenants—I once was one myself.lieutenants—I once was one myself.

16. ““In great armies,In great armies,
the job of generalsthe job of generals
is to back up theiris to back up their
sergeants.”sergeants.”
—COL Tom Wilhelm, from Robert Kaplan,—COL Tom Wilhelm, from Robert Kaplan,
“The Man Who Would Be Khan,”“The Man Who Would Be Khan,” The AtlanticThe Atlantic

17. THETHE
SERGEANTSSERGEANTS
RUN THERUN THE
ARMY.ARMY.
PERIOD.PERIOD.

18. Period.Period.

19. #1#1 CAUSE OFCAUSE OF
EMPLOYEEEMPLOYEE
DIS-DIS-
SATISFACTION?SATISFACTION?

20. Employee retention & satisfaction:Employee retention & satisfaction:
““OverwhelminOverwhelmin ggll
yy based on thebased on the
first-linefirst-line
manamanaggerer!”!”
Source: Marcus Buckingham & Curt Coffman,Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’sFirst, Break All the Rules: What the World’s
Greatest Managers Do DifferentlyGreatest Managers Do Differently

21. Worker Satisfaction-Retention-Worker Satisfaction-Retention-
Productivity …Productivity … the 1the 1stst
lineline
manager-supervisor-boss ismanager-supervisor-boss is
unquestionably the key to theunquestionably the key to the
treasurytreasury..
Even in a “great” company …Even in a “great” company … anan
employee at odds with his or her 1employee at odds with his or her 1stst
line boss is likely to be an impairedline boss is likely to be an impaired
performerperformer . (And vice versa: In a “bad”. (And vice versa: In a “bad”
company, an employee in synch withcompany, an employee in synch with
his 1his 1stst
line supervisor is likely to beline supervisor is likely to be
productive.)productive.)

22. ““PeoplePeople
leaveleave
managersmanagers
notnot
companies.”companies.”
——Dave WheelerDave Wheeler

23. Dave Wheeler has been a regular andDave Wheeler has been a regular and
savvy contributor to the commentssavvy contributor to the comments
section of my blog. On this topic, fromsection of my blog. On this topic, from
his own reading, comes a compact wayhis own reading, comes a compact way
of making this point—with which I agreeof making this point—with which I agree
wholeheartedly.wholeheartedly.

24. I am sure you “spendI am sure you “spend
time” on this. Mytime” on this. My
question: Is it an …question: Is it an …
OBSESSIONOBSESSION ……
worthy of the impact itworthy of the impact it
has on enterprisehas on enterprise
performance?performance?

25. Not just “important” (I’m sure youNot just “important” (I’m sure you
agree).agree).
Rather:Rather:
AA ““strategicstrategic obsession.”obsession.”

26. TEN “Obvious” Questions Concerning Your First-lineTEN “Obvious” Questions Concerning Your First-line
SupervisorsSupervisors
1. Are you, Big Boss, a ...1. Are you, Big Boss, a ... formal studentformal student … of first-line… of first-line
supervisor behavioral excellence?*supervisor behavioral excellence?* (*Yes, this sort of(*Yes, this sort of
thing can be formally studied.)thing can be formally studied.)
2. Do you absolutely understand and act upon the fact2. Do you absolutely understand and act upon the fact
that the first-line boss is the …that the first-line boss is the … KEYKEY
LEADERSHIP ROLELEADERSHIP ROLE … in the organization?… in the organization?
Technical mastery is important—but secondary.Technical mastery is important—but secondary.
3. Does HR single out first-line supervisors individually3. Does HR single out first-line supervisors individually
and collectively for tracking purposes andand collectively for tracking purposes and
special/“over the top” developmental attention?special/“over the top” developmental attention?
4. Do you spend gobs and gobs (and then more and4. Do you spend gobs and gobs (and then more and
more gobs and gobs) of time ...more gobs and gobs) of time ... selectingselecting … the first-… the first-
line supervisors? Are your selection criterialine supervisors? Are your selection criteria
consistent with the enormity of the impact that first-consistent with the enormity of the impact that first-
line bosses will subsequently have?line bosses will subsequently have?

27. Do you absolutelyDo you absolutely
understand—and actunderstand—and act
upon—the fact thatupon—the fact that
the first-line boss isthe first-line boss is
the …the … KEYKEY
LEADERSHIPLEADERSHIP
ROLEROLE … in the… in the

28. TEN “Obvious” Questions Concerning Your First-lineTEN “Obvious” Questions Concerning Your First-line
SupervisorsSupervisors
5. Do you have the ...5. Do you have the ... ABSOLUTE BEST TRAINING &ABSOLUTE BEST TRAINING &
CONTINUING DEVELOPMENT PROGRAMS IN THECONTINUING DEVELOPMENT PROGRAMS IN THE
INDUSTRYINDUSTRY (or some subset thereof) … for first-line(or some subset thereof) … for first-line
supervisors?supervisors?
6. Do you formally and rigorously ... mentor ... first-6. Do you formally and rigorously ... mentor ... first-
line supervisors?line supervisors?
7. Are you willing, pain notwithstanding, to ... leave a7. Are you willing, pain notwithstanding, to ... leave a
first-line supervisor slot open ... until you can fill thefirst-line supervisor slot open ... until you can fill the
slot with somebody spectacular? (And are you willingslot with somebody spectacular? (And are you willing
to use some word like ...to use some word like ... “spectacular”“spectacular” ... in... in
judging applicants forjudging applicants for
the job?)the job?)
8. Is it possible that …8. Is it possible that … promotion decisionspromotion decisions … for… for
first-line supervisors are as, or even more, importantfirst-line supervisors are as, or even more, important
than promotion decisions for the likes of VP slots?than promotion decisions for the likes of VP slots?
(Hint: Yes.)(Hint: Yes.)
9. Do you consider and evaluate the quality of your …9. Do you consider and evaluate the quality of your …
full set/CADREfull set/CADRE …. of first-line supervisors?…. of first-line supervisors?
10. Are your first-line supervisors accorded the10. Are your first-line supervisors accorded the
respect that the power of their position merits?respect that the power of their position merits?

29. Please take these 10 questionsPlease take these 10 questions
(VERY)(VERY) seriously—each ofseriously—each of
them!them!

30. E.g.: Do you have the ...E.g.: Do you have the ...
ABSOLUTEABSOLUTE BESTBEST
11stst
-LINE LEADERSHIP-LINE LEADERSHIP
TRAININGTRAINING &&
DEVELOPMENTDEVELOPMENT
PROGRAMSPROGRAMS
IN THE INDUSTRYIN THE INDUSTRY ??

31. OneOne (VERY)(VERY) good indicator.good indicator.

32. Capital Asset!Capital Asset!
*Selecting and training and*Selecting and training and
mentoring one’s pool ofmentoring one’s pool of
front-front-
line managers can be aline managers can be a
“Core“Core
Competence”Competence” of surpassingof surpassing
strategic importance.strategic importance.
*Put under a microscope*Put under a microscope
evereveryy
element of the cradle-to-element of the cradle-to-
ggraverave pprocess of buildinrocess of buildin gg
thethe
cacappabilitabilityy of our full cadreof our full cadre

33. Suggested addition to your Statement ofSuggested addition to your Statement of
Core Values:Core Values: “We are obsessed“We are obsessed
with developing a cadre ofwith developing a cadre of
1st line managers that is1st line managers that is
second to none—wesecond to none—we
understand that this cadreunderstand that this cadre
per se is arguably one ofper se is arguably one of
our top two or three mostour top two or three most
important ‘Strategicimportant ‘Strategic
Assets.’”Assets.’”

34. The quality of the …The quality of the … entireentire
cadre of 1cadre of 1stst
lineline
bossesbosses … is an asset (or liability)… is an asset (or liability)
of the 1of the 1stst
order.order.
Therefore, “having the best” is literallyTherefore, “having the best” is literally
a priceless strategic asset—a priceless strategic asset— andand
attainment thereof should be front andattainment thereof should be front and
center in the corcenter in the cor pporate value setorate value set ..

35. 18-month report:18-month report:
STRIKING ASTRIKING A
NERVE …NERVE …

36. As I write, I’ve been banging on aboutAs I write, I’ve been banging on about
this for about 18 months.this for about 18 months. In all myIn all my
experience, I have rarely hit such anexperience, I have rarely hit such an
exposed nerve—and have rarelyexposed nerve—and have rarely
observed such vigorous follow-upobserved such vigorous follow-up
(interestingly, especially from giant(interestingly, especially from giant
company CEOs).company CEOs).
Upon reflecting, most agree with theUpon reflecting, most agree with the
basic assertion of the “over-the-top”basic assertion of the “over-the-top”
importanceimportance
of the 1of the 1stst
line cadre—and, further, thatline cadre—and, further, that
they are doing a half-assed job at bestthey are doing a half-assed job at best
with selection and development, andwith selection and development, and
that they’re downright embarrassed atthat they’re downright embarrassed at
how inadequate their training is.how inadequate their training is.

37. 4.24.2 THE ABSENCE OFTHE ABSENCE OF
XFXXFX/CROSS-/CROSS-
FUNCTIONALFUNCTIONAL
EXCELLENCE IS THEEXCELLENCE IS THE
PRINCIPAL SOURCE OFPRINCIPAL SOURCE OF
MOSTMOST
ORGANIZATIONALORGANIZATIONAL
EFFECTIVENESSEFFECTIVENESS
PROBLEMSPROBLEMS

38. 1B11B1: (REALLY) First Things Before First: (REALLY) First Things Before First
ThingsThings
1.1. 11stst
line supervisorsline supervisors are Key #1 toare Key #1 to
organizational effectiveness—and weorganizational effectiveness—and we
invariably (waaaay) underplay theirinvariably (waaaay) underplay their
collective importance.collective importance.
2.2. XFX/Cross-Functional EXCELLENCEXFX/Cross-Functional EXCELLENCE ..
Poor “XFX” is the principle element in thePoor “XFX” is the principle element in the
delay of everything—and the answer is notdelay of everything—and the answer is not
primarily sexy software systems.primarily sexy software systems.
3.3. LISTENING.LISTENING. You might go so far as toYou might go so far as to
say “Listening IS Strategy.” I’d go that far!say “Listening IS Strategy.” I’d go that far!
And turning everyone into a “listeningAnd turning everyone into a “listening
professional” is not a stretch of theprofessional” is not a stretch of the
imagination.imagination.
4.4. MeetingsMeetings, like it or not, are “what we, like it or not, are “what we

39. PROBLEM #1.
OPPORTUNITY
#1.

40. XFX =XFX =
#1#1**
*Cross-Functional*Cross-Functional eXcellenceeXcellence

41. The Strategic Importance of XFXThe Strategic Importance of XFX
(Cross-functional eXcellence)(Cross-functional eXcellence)
I believe that in most any organizationI believe that in most any organization
of, say, more than a dozen people, the #1of, say, more than a dozen people, the #1
issue is “cross-functionalissue is “cross-functional
communication-integration.” It is bothcommunication-integration.” It is both
“Problem #1” and “Opportunity #1.” From“Problem #1” and “Opportunity #1.” From
intelligence pattern recognition to orderintelligence pattern recognition to order
execution to innovation, our INTERNALexecution to innovation, our INTERNAL
barriers—not our competitors’barriers—not our competitors’
cleverness—are the principal impedimentcleverness—are the principal impediment
to effectiveness. I suspect we mostlyto effectiveness. I suspect we mostly
agree with that. But is it—agree with that. But is it— AND ITAND IT
RARELY ISRARELY IS—literally seen as—literally seen as
“SO1”“SO1” —Strategic Opportunity #1?—Strategic Opportunity #1?
(Please do me the great honor of thinking about(Please do me the great honor of thinking about

42. EXPLICITLYEXPLICITLY &&
VISIBLYVISIBLY &&
RELENTLESSLYRELENTLESSLY
MANAGE TOMANAGE TO
XFXXFX
STANDARD!STANDARD!

43. If XFX is truly “StrategicIf XFX is truly “Strategic
Opportunity #1”—Opportunity #1”— and it isand it is—then—then
manage and spend you timemanage and spend you time
accordingly!accordingly!

44. 4.2.14.2.1 LunchLunch !!

45. NEVERNEVER
WASTE AWASTE A
LUNCH!LUNCH!

46. Sounds a little lightweight if the problemSounds a little lightweight if the problem
is such a big one. Surely a new org chartis such a big one. Surely a new org chart
and a few million more investment $$and a few million more investment $$
tossed into the ERP budget top the list.tossed into the ERP budget top the list.
I’m hardly urging you not to invest. But II’m hardly urging you not to invest. But I
do claim—in, still, 2016—that the socialdo claim—in, still, 2016—that the social
aspects of XFX are largely ignored oraspects of XFX are largely ignored or
given no more than lip service—whereasgiven no more than lip service—whereas
they ought to rank at, yes, the top of thethey ought to rank at, yes, the top of the
list.list.
And at the top of my “social factors” listAnd at the top of my “social factors” list
is, no kidding …is, no kidding …
LUNCH.LUNCH.

47. TheThe
sacred 220sacred 220
“ABs”.*“ABs”.*

48. About 220 workday lunches per year =About 220 workday lunches per year =
220220 precious, non-repeatableprecious, non-repeatable
opportunitiesopportunities (“at bats” in baseball(“at bats” in baseball
terms) to make hay of one sort orterms) to make hay of one sort or
another.another.
And, to be trite, once they’re goneAnd, to be trite, once they’re gone
they’re gone for good.they’re gone for good.
Am I being obsessive?Am I being obsessive?
Yup.Yup.
It’s merited.It’s merited.
A lunch lost is a lunch lost.A lunch lost is a lunch lost.
Starting …Starting … TODAYTODAY..

49. L =L =
XFFRA1XFFRA1**

50. If you have a passel of socialIf you have a passel of social
acquaintances/ genuine colleagues inacquaintances/ genuine colleagues in
other functions—even though they willother functions—even though they will
doubtless be true to their professionaldoubtless be true to their professional
organizational role—typical cross-organizational role—typical cross-
functional friction will in 9 of 10, or 98functional friction will in 9 of 10, or 98
of 100, cases be reduced dramatically.of 100, cases be reduced dramatically.
PERIOD.PERIOD.

51. % XF% XF
lunches*lunches*
**MeasureMeasure!!
Monthly! Part of evaluation!Monthly! Part of evaluation!

52. #/%#/% of lunches with people in …of lunches with people in …
OTHEROTHER
FUNCTIONSFUNCTIONS..
(( BIGBIG deal.)deal.)
(( MEASUREMEASURE. EXPLICITLY. EXPLICITLY
INCLUDE IN EVALUATIONS.)INCLUDE IN EVALUATIONS.)

53. LUNCHLUNCH
> SAP/> SAP/
ORACLEORACLE

54. I’m not dissing the enterprise softwareI’m not dissing the enterprise software
offerings from the likes of Oracle orofferings from the likes of Oracle or
SAP. They are marvels.SAP. They are marvels.
ButBut ……
These sophisticated, expensiveThese sophisticated, expensive
systems routinely deliver much lesssystems routinely deliver much less
than promised—thanks to thatthan promised—thanks to that “damned“damned
people stuff”people stuff” that has a habit ofthat has a habit of
getting in the way of successfulgetting in the way of successful
implementation. So I’ll leave the ERPsimplementation. So I’ll leave the ERPs
et al. to you—et al. to you— and trand tryy toto ppoint outoint out
effective waeffective wayys to turn that “damns to turn that “damn
ppeoeopple stuff” into a blockbusterle stuff” into a blockbuster
ppositive rather than a neositive rather than a ne ggative orative or
neutralneutral..

55. 4.2.24.2.2 PersonalizePersonalize
itit !!

56. ““PersonalPersonal
relationships are therelationships are the
fertile soil fromfertile soil from
which allwhich all
advancement,advancement, allall
success,success,
allall achievement inachievement in
Real life grow.”Real life grow.” —Ben Stein—Ben Stein

57. ““The terms ‘hardThe terms ‘hard
facts,’ and ‘the softfacts,’ and ‘the soft
stuff ’ used instuff ’ used in
business imply thatbusiness imply that
data are somehowdata are somehow
real and strong whilereal and strong while
emotions are weakemotions are weak
and less important.”and less important.”
—George Kohlrieser,—George Kohlrieser, Hostage at the TableHostage at the Table
(Kohlrieser is a hostage negotiator and professor(Kohlrieser is a hostage negotiator and professor
of management)of management)

58. Amen!Amen!
(From a great investment guru.)(From a great investment guru.)
(From a successful hostage(From a successful hostage
negotiator.)negotiator.)
And in absolutely no place is thisAnd in absolutely no place is this
“relationship stuff” more important“relationship stuff” more important
than in the pursuit ofthan in the pursuit of ……
XFXXFX ..

59. ““They brainstormed aboutThey brainstormed about
how to turn thishow to turn this
[catastrophic] mis-[catastrophic] mis-
understanding around, andunderstanding around, and
came up with a simple plan—came up with a simple plan—
every daevery dayy for the next threefor the next three
months she would have lunchmonths she would have lunch
or coffee with one of theor coffee with one of the
ppartnersartners. Today she is. Today she is
executive vice president forexecutive vice president for
[Fortune 50 company].”[Fortune 50 company].”
—— Betsy Myers, on an extraordinarily talented professionalBetsy Myers, on an extraordinarily talented professional

60. A talented partner at a prestigious lawA talented partner at a prestigious law
firm kept missing the promotions shefirm kept missing the promotions she
clearly was due. After some analysisclearly was due. After some analysis
and coaching, it appeared that she hadand coaching, it appeared that she had
her head down working hard andher head down working hard and
effectively—but had not bothered toeffectively—but had not bothered to
bond with her fellow partners; shebond with her fellow partners; she
assumed that the clearly brilliant workassumed that the clearly brilliant work
would stand on its own.would stand on its own.
The coach and she came up with aThe coach and she came up with a
plan:plan:
DO LUNCHDO LUNCH. That is, initiate a. That is, initiate a
systematic process of bridge building,systematic process of bridge building,
with lunch as the chosen vehicle.with lunch as the chosen vehicle.
It worked.It worked.
Big time.Big time.

61. ““Don’t ever use that wordDon’t ever use that word
‘synergy.’ It’s a‘synergy.’ It’s a
hideous word. Theword. The
only thing that works is naturalonly thing that works is natural
law.law. Given enouGiven enouggh time,h time,
natural relationships willnatural relationships will
develodevelopp between ourbetween our
businessesbusinesses.”.”
——Barry Diller, responding to a student question, address atBarry Diller, responding to a student question, address at
the Harvard Business School (from Marshall Goldsmith,the Harvard Business School (from Marshall Goldsmith,
What Got You Here Won’t Get You ThereWhat Got You Here Won’t Get You There ))

62. The topic here is not synergy amongThe topic here is not synergy among
businesses. Yet such a topic isbusinesses. Yet such a topic is
enormous. Business after businessenormous. Business after business
promises “synergies”—and fails topromises “synergies”—and fails to
deliver in 9 cases out of 9.4.deliver in 9 cases out of 9.4.
Diller says synergies may well emergeDiller says synergies may well emerge
—but “emerge” is the key word. They—but “emerge” is the key word. They
will emerge through friendshipswill emerge through friendships
(“natural relationships”). I.e., courtesy(“natural relationships”). I.e., courtesy
…… SOCIAL FACTORSSOCIAL FACTORS..
Which of course is … precisely … myWhich of course is … precisely … my
point re all-important XFX/Cross-point re all-important XFX/Cross-
functional Excellence.functional Excellence.

63. ““Allied commands depend onAllied commands depend on
mutual confidencemutual confidence
and this confidence isand this confidence is
gained, above allgained, above all
through thethrough the
develodeveloppmentment
ofof friendshifriendshippss.”.”
——General D.D. Eisenhower,General D.D. Eisenhower, Armchair GeneralArmchair General **
*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]
was the ease with whichwas the ease with which he made friends andhe made friends and
earned the trust of fellow cadets whoearned the trust of fellow cadets who
came from widelcame from widel yy varied backvaried backggroundsrounds; it; it

64. General Eisenhower’s success in the D-General Eisenhower’s success in the D-
Day adventure, those close to theDay adventure, those close to the
scene agree, stemmed to anscene agree, stemmed to an
extraordinary degree from his ability toextraordinary degree from his ability to
keep warring tribes from each others’keep warring tribes from each others’
throats. (Oddly to some, the nastiestthroats. (Oddly to some, the nastiest
infighting known to man can occurinfighting known to man can occur
among generals and between generalsamong generals and between generals
and their political bosses.)and their political bosses.)
Eisenhower may or may not have beenEisenhower may or may not have been
a great strategist. He was definitelya great strategist. He was definitely
possessor of an extraordinarypossessor of an extraordinary
temperament and a peerless bridgetemperament and a peerless bridge
builder.builder.

65. George Crile (George Crile (Charlie Wilson’s WarCharlie Wilson’s War ) on Charlie) on Charlie
Wilson:Wilson: “The way things normally work, if you’re not Jewish“The way things normally work, if you’re not Jewish
you don’t get into the Jewish caucus, but Charlie did. And ifyou 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 Charlieyou’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 theplays poker with the black caucus; they had a game, and he’s the
only white guy in it.only white guy in it. The HouseThe House [of Representatives][of Representatives],,
like anlike anyy human institution, ishuman institution, is
moved by friendshimoved by friendshipps, and nos, and no
matter whatmatter what ppeoeopple mile migght thinkht think
about Wilson’s antics, theabout Wilson’s antics, theyy tendtend
to like him and ento like him and enjjoy hisoy his
comcomppanany.”y.”

66. Not quite as profound as theNot quite as profound as the
Eisenhower story … butEisenhower story … but
revelatory nonetheless. (Oh, andrevelatory nonetheless. (Oh, and
Charlie to a certain degree didCharlie to a certain degree did
“change the world”—i.e.,“change the world”—i.e.,
contributed significantly to thecontributed significantly to the
implosion of the Soviet Union.)implosion of the Soviet Union.)

67. PROMOTE INTOPROMOTE INTO
FUNCTIONALFUNCTIONAL
LEADERSHIPLEADERSHIP
POSITIONS BASEDPOSITIONS BASED
PRIMARILY ON …PRIMARILY ON …
TEMPERAMENTTEMPERAMENT ..

68. We all knowWe all know
“temperament” is“temperament” is
“important.”“important.”
In fact it is …In fact it is … decisivedecisive..
(Act accordingly.)(Act accordingly.)
(Starting(Starting nownow.).)

69. 4.2.34.2.3 R.O.I.R.R.O.I.R.

70. R.O.I.R.R.O.I.R.
> R.O.I.> R.O.I.

71. RRETURNETURN OONN
IINVESTMENT INNVESTMENT IN
RRELATIONSHIPELATIONSHIP
SS

72. R.O.I.R. beats traditional R.O.I. by 20R.O.I.R. beats traditional R.O.I. by 20
furlongs!furlongs!

73. ““Keep a shortKeep a short
enemies list. Oneenemies list. One
enemy can do moreenemy can do more
damage than thedamage than the
good done by agood done by a
hundred friends.”hundred friends.” —Bill—Bill
Walsh,Walsh, The Score Takes Care of ItselfThe Score Takes Care of Itself (Walsh was the(Walsh was the
“hall of fame” coach of the San Francisco 49ers“hall of fame” coach of the San Francisco 49ers
football team)football team)

74. 100:100:

75. R.O.I.R.R.O.I.R.
Always #1.Always #1.
You’ll see this slide again.You’ll see this slide again.
As well you should.As well you should.
(I should use it 50 times!)(I should use it 50 times!)
100:1.100:1.
Put your ego on hold.Put your ego on hold.
“Who was ‘right’” is (wholly) irrelevant.“Who was ‘right’” is (wholly) irrelevant.
100:1.100:1.
In the GRG/Great Relationships GameIn the GRG/Great Relationships Game
… which in the end is “the only game in… which in the end is “the only game in
town” … making enemies istown” … making enemies is “Sin #1.”“Sin #1.”
(What a waste!)(What a waste!)
100:1.100:1.

76. 4.2.44.2.4 SpaceSpace

77. (Way) Underutilized Lever(Way) Underutilized Lever
SPACE!SPACE!
SPACE!SPACE!
SPACE!SPACE!
SPACE!SPACE!

78. Manipulating space is a (Manipulating space is a ( the?the? ))
stupendousstupendous andand unsungunsung andand doabledoable
opportunity to affect the quality ofopportunity to affect the quality of
cross-functional co-ordination.cross-functional co-ordination.
A case can be made: SpaceA case can be made: Space
management =management = #1#1 determinant ofdeterminant of
human interaction patterns.human interaction patterns.
Yes, damn it … #1.Yes, damn it … #1.
And it is seldom attended to withAnd it is seldom attended to with
appropriate urgency and reverence.appropriate urgency and reverence.
(And, since it is largely unsung, it’s a(And, since it is largely unsung, it’s a
tool often available to relatively juniortool often available to relatively junior
folks.)folks.)

79. Geologists +Geologists +
Geophysicists +Geophysicists +
A little bit of love =A little bit of love =
OilOil

80. Case in point: In a consulting study ICase in point: In a consulting study I
did years ago, one oil company wasdid years ago, one oil company was
ahead of the pack in terms ofahead of the pack in terms of
discovery success.discovery success.
The critical difference seemed to beThe critical difference seemed to be
thethe co-locationco-location ofof
geologists and geophysicists.geologists and geophysicists.
The typically warring tribes developedThe typically warring tribes developed
a deep appreciation of one another’sa deep appreciation of one another’s
skills and worldview—and measurableskills and worldview—and measurable
success ensued.success ensued.
(Nothing so complex is ever so simple—but this was(Nothing so complex is ever so simple—but this was
certainly a big piece of the puzzle.)certainly a big piece of the puzzle.)

81. 4.2.54.2.5 XFX:XFX: SOCIALSOCIAL
ACCELERATORSACCELERATORS
……

82. XFX:XFX: SOCIALSOCIAL
ACCELERATORS …ACCELERATORS …

83. The key “XFX” (CROSS-FUNCTIONALThe key “XFX” (CROSS-FUNCTIONAL
EXCELLENCE) attainment tools areEXCELLENCE) attainment tools are
social—not technological.social—not technological.
E.g. …E.g. …

84. XFX/TypicalXFX/Typical SocialSocial AcceleratorsAccelerators
1. EVERYONE’s (more or less) JOB #1: Make friends in1. EVERYONE’s (more or less) JOB #1: Make friends in
other functions! (Purposefully. Consistently.other functions! (Purposefully. Consistently.
Measurably.)Measurably.)
2. “Do lunch” with people in other functions!!2. “Do lunch” with people in other functions!!
Frequently!! (Minimum 10% to 25% for everyone?Frequently!! (Minimum 10% to 25% for everyone?
Measured.)Measured.)
3. Ask peers in other functions for references so you3. Ask peers in other functions for references so you
can become conversant in their world. (It’s onecan become conversant in their world. (It’s one
helluva sign of ... GIVE-A-DAMN-ism.)helluva sign of ... GIVE-A-DAMN-ism.)
4. Religiously invite counterparts in other functions to4. Religiously invite counterparts in other functions to
your team meetings. Ask them to present “cool stuff”your team meetings. Ask them to present “cool stuff”
from “their world” to your group. (Useful. Mark offrom “their world” to your group. (Useful. Mark of
respect.)respect.)
5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OFPROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF
“XFX” TO ACKNOWLEDGE—PRIVATELY AND“XFX” TO ACKNOWLEDGE—PRIVATELY AND
PUBLICALLY. (Bosses: ONCE A DAY … make a shortPUBLICALLY. (Bosses: ONCE A DAY … make a short
call or visit or send an email of “Thanks” for somecall or visit or send an email of “Thanks” for some
sort of XFX gesture by your folks and some othersort of XFX gesture by your folks and some other
function’s folks.)function’s folks.)
6. Present counterparts in other functions awards for6. Present counterparts in other functions awards for
service to your group. Tiny awards at least weekly;service to your group. Tiny awards at least weekly;
and an “Annualand an “Annual All-Star Supporters (from otherAll-Star Supporters (from other
groups) Banquet” modeled after superstargroups) Banquet” modeled after superstar
salesperson banquets.salesperson banquets.

85. Present counterparts in otherPresent counterparts in other
functions recognition/awardsfunctions recognition/awards
for service to your group:for service to your group:
Tiny awards at leastTiny awards at least
weekly. An “Annual All-weekly. An “Annual All-
Star SupportersStar Supporters (from other(from other
groups)groups) Banquet” modeledBanquet” modeled
afterafter (and equivalent to(and equivalent to !!))
superstar salespersonsuperstar salesperson
banquets.banquets.

86. XFX/ TypicalXFX/ Typical SocialSocial AcceleratorsAccelerators
7. Routinely discuss—A SEPARATE AGENDA ITEM—7. Routinely discuss—A SEPARATE AGENDA ITEM—
good and problematic acts of cross-functional co-good and problematic acts of cross-functional co-
operation at every Team Meeting.operation at every Team Meeting.
8. When someone in another function asks for8. When someone in another function asks for
assistance, respond with … more … alacrity than youassistance, respond with … more … alacrity than you
would if it were the person in the cubicle next towould if it were the person in the cubicle next to
yours—or even more than you would for a key externalyours—or even more than you would for a key external
customer. (Remember, XFX is the key to Customercustomer. (Remember, XFX is the key to Customer
Retention which is in turn the key to “all goodRetention which is in turn the key to “all good
things.”)things.”)
9. Do not bad mouth ... “the damned accountants,”9. Do not bad mouth ... “the damned accountants,”
“the bloody HR guy.” Ever. (Bosses: Severe penalties“the bloody HR guy.” Ever. (Bosses: Severe penalties
for this—including public tongue-lashings.)for this—including public tongue-lashings.)
10.10. Get physical! “Co-location” may well be the mostGet physical! “Co-location” may well be the most
powerful “culture change lever.”powerful “culture change lever.” Physical X-Physical X-
functional proximity is almost a … guarantee … offunctional proximity is almost a … guarantee … of
remarkably improved co-operation—to aid this oneremarkably improved co-operation—to aid this one
needs flexible workspaces that can be mobilized for aneeds flexible workspaces that can be mobilized for a
team in a flash.team in a flash.
11.11. Establish “adhocracy” as S.O.P.Establish “adhocracy” as S.O.P. To improve theTo improve the
new “X-functional Culture” (and business results),new “X-functional Culture” (and business results),
little XF teams should be formed on the spot to deallittle XF teams should be formed on the spot to deal
with an urgent issue—they may live for but ten days,with an urgent issue—they may live for but ten days,
but it helps the XF habit, making it normal to bebut it helps the XF habit, making it normal to be

87. The subtext ofThe subtext of
many, if not all, ofmany, if not all, of
these ideas isthese ideas is
moving from implicitmoving from implicit
toto exexpplicitlicit focus onfocus on
XFX—it shouldXFX—it should
noisily intrude intonoisily intrude into
(literally) every(literally) every
discussion!discussion!

88. XFX/ TypicalXFX/ Typical SocialSocial AcceleratorsAccelerators
12. Early project “management” experience. Within days,12. Early project “management” experience. Within days,
literally, of coming aboard folks should be “running”literally, of coming aboard folks should be “running”
some bit of a bit of a bit project, working with folks fromsome bit of a bit of a bit project, working with folks from
other functions—hence, “all this” becomes as natural asother functions—hence, “all this” becomes as natural as
breathing.breathing.
13. Work proactively to give as large as possible13. Work proactively to give as large as possible
numbers of people temporary assignments in othernumbers of people temporary assignments in other
functions—especially Finance.functions—especially Finance.
14. “Get ’em out with the customer.” Rarely does the14. “Get ’em out with the customer.” Rarely does the
accountant or bench scientist call on the customer.accountant or bench scientist call on the customer.
Reverse that. Give everyone more or less regularReverse that. Give everyone more or less regular
“customer-facing experiences.” She or he learns quickly“customer-facing experiences.” She or he learns quickly
that the customer is not interested in our in-house turfthat the customer is not interested in our in-house turf
battles!battles!
15. Consider creating a special role, or even position.15. Consider creating a special role, or even position.
Specialty chemical company Buckman Labs establishedSpecialty chemical company Buckman Labs established
“knowledge transfer facilitators“knowledge transfer facilitators ,,”” effectively formereffectively former
“middle managers,” with 100% of discretionary pay“middle managers,” with 100% of discretionary pay
based on success at spurring integration acrossbased on success at spurring integration across
previously impermeable barriers.previously impermeable barriers.

89. 16. Formal evaluations. Everyone, starting with the16. Formal evaluations. Everyone, starting with the
receptionist, should have a significant XF ratingreceptionist, should have a significant XF rating
component in their evaluation. (The “XFX Performance”component in their evaluation. (The “XFX Performance”
should be among the Top 3 items in all managers’should be among the Top 3 items in all managers’
evaluations.)evaluations.)
17.17. Every functional unit should have strict andEvery functional unit should have strict and
extensive measures of “customer satisfaction” basedextensive measures of “customer satisfaction” based
on evaluations from other functions of its usefulnesson evaluations from other functions of its usefulness
and effectiveness and value-added to the enterprise asand effectiveness and value-added to the enterprise as
a whole.a whole.
18. Demand XF experience for, especially, senior jobs.18. Demand XF experience for, especially, senior jobs.
For example, the U.S. military requires all would-beFor example, the U.S. military requires all would-be
generals and admirals to have served a full tour in a jobgenerals and admirals to have served a full tour in a job
whose only goals were cross-functional achievements.whose only goals were cross-functional achievements.
19. “Deep dip.” Dive three levels down in the19. “Deep dip.” Dive three levels down in the
organization to fill a senior role with some one who hasorganization to fill a senior role with some one who has
been noticeably pro-active on adding value viabeen noticeably pro-active on adding value via
excellent cross-functional integration.excellent cross-functional integration.
20. XFX is … PERSONAL … as well as about20. XFX is … PERSONAL … as well as about
organizational effectiveness. PXFX (Personal XFX) isorganizational effectiveness. PXFX (Personal XFX) is
arguably the #1 Accelerant to personal success—inarguably the #1 Accelerant to personal success—in
terms of organizational career, freelancer/Brand You, orterms of organizational career, freelancer/Brand You, or
as entrepreneur.as entrepreneur.
21.21. Excellence!Excellence! There is a “State of XFThere is a “State of XF

90. Formal evaluations.Formal evaluations.
EverEveryyoneone, starting with, starting with
the receptionist, shouldthe receptionist, should
have ahave a sisiggnificantnificant XFXXFX
rating component inrating component in
their evaluation. (Thetheir evaluation. (The
“XFX Performance”“XFX Performance”
should be among theshould be among the
Top 3 items inTop 3 items in allall
managers’ evaluations.)managers’ evaluations.)

91. The preceding list is meant to beThe preceding list is meant to be
suggestive, not all inclusive—the ideasuggestive, not all inclusive—the idea
is to get your juices flowing. Again …is to get your juices flowing. Again …
SOCIALSOCIAL … is the key word.… is the key word.
(Make your own list. It could easily be(Make your own list. It could easily be
three times longer than mine. But,three times longer than mine. But,
today … GET GOING.)today … GET GOING.) (“Get going” =(“Get going” =
PickPick 11 RIGHT NOW. Take 1RIGHT NOW. Take 1stst
implementation steps in the next 3implementation steps in the next 3
working days.)working days.)
(In fact, I’ve got a longer list, “The XFX(In fact, I’ve got a longer list, “The XFX
50,” which appears as Part50,” which appears as Part “2A”“2A” to thisto this
section of the presentation.)section of the presentation.)

92. 4.2.64.2.6 SPECIALSPECIAL
SUGGESTION/SUGGESTION/
““COMMAND”COMMAND”
COMING …COMING …

93. ““Incidentally” …Incidentally” …

94. Women’s NeWomen’s Ne ggotiatinotiatingg StrenStrenggthsths
*Ability to put themselves in their*Ability to put themselves in their
counterparties’ shoescounterparties’ shoes
*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed
communication stylecommunication style
*Empathy that facilitates trust-building*Empathy that facilitates trust-building
*Curious and attentive listening*Curious and attentive listening
*Less competitive attitude*Less competitive attitude
*Strong sense of fairness and ability to*Strong sense of fairness and ability to
persuadepersuade
*Proactive risk manager*Proactive risk manager
*Collaborative decision-making*Collaborative decision-making
Source: Horacio Falcao, cover story,Source: Horacio Falcao, cover story, World BusinessWorld Business, “Say It Like, “Say It Like
a Woman: Why the 21a Woman: Why the 21stst
-century negotiator will need the female-century negotiator will need the female
touch”touch”

95. arguably of the utmost importancearguably of the utmost importance
here. (Let’s not call it “issue”—let’shere. (Let’s not call it “issue”—let’s
call it “opportunity.”)call it “opportunity.”)
Consider the previous slideConsider the previous slide
enumerating women’s relativeenumerating women’s relative
effectiveness at negotiating. Quiteeffectiveness at negotiating. Quite
simply, among other things, women aresimply, among other things, women are
less sensitive to hierarchicalless sensitive to hierarchical
considerations and more willing toconsiderations and more willing to
invest time in relationship buildinginvest time in relationship building
throughout the enterprise—at anythroughout the enterprise—at any
level.level.
Such skills are central to “XFX.”Such skills are central to “XFX.”
Hence “gender balance”—or “genderHence “gender balance”—or “gender
IM-balance” favoring women in keyIM-balance” favoring women in key
roles—likely tilts the playing field inroles—likely tilts the playing field in
the direction

96. 4.2.74.2.7 C(I)C(I)>C(E)C(E)

97. ““You’reYou’re
spending toospending too
much timemuch time
with yourwith your [bill-paying][bill-paying]
customers!”customers!”

98. C(I)C(I)>>C(EC(E
))

99. I suggested to a successful systemsI suggested to a successful systems
salesperson that she wassalesperson that she was “spending“spending
too much time with your bill-payingtoo much time with your bill-paying
customers!”customers!” [External Customers, or[External Customers, or
C(E).]C(E).]
Huh?Huh?
She’d said her principal roadblock toShe’d said her principal roadblock to
more business with current customersmore business with current customers
was delivery slippages. I said awas delivery slippages. I said a
significant part of the fix was tosignificant part of the fix was to
develop more and deeper relationshipsdevelop more and deeper relationships
with her …with her … “Internal Customers”/C(I)“Internal Customers”/C(I) . I. I
said that in fact thosesaid that in fact those internalinternal
customers ought to be hercustomers ought to be her #1#1 priority.priority.
(Think about it.)(Think about it.)
(Hard.)(Hard.)

100. RRETURNETURN OONN
IINVESTMENT INNVESTMENT IN
RRELATIONSHIPSELATIONSHIPS

101. FYI:FYI:
“RELATIONSHIP“RELATIONSHIP
POWER” =POWER” =
“MONOPOLY“MONOPOLY
POWER”POWER”

102. C(I) > C(E)C(I) > C(E)
Goal/s:Goal/s: (1) “Unfair”(1) “Unfair”
“internal market“internal market
share”! (2)share”! (2) HaveHave
yyour wholeour whole
ororgganizationanization
zealouslzealouslyy workinworkingg
to maketo make yyouou
successfulsuccessful !!

103. The goal (for that systemsThe goal (for that systems
salesperson) is clear—an “unfair”salesperson) is clear—an “unfair”
“market share” of attention from“market share” of attention from
those internal staffers.those internal staffers.
She unabashedly pursues throughShe unabashedly pursues through
good-better-best relationships a degood-better-best relationships a de
facto monopoly—the monopolizationfacto monopoly—the monopolization
of other important folks’ love andof other important folks’ love and
affection and time, as it were.affection and time, as it were.
She wants, in effect, her whole-damn-She wants, in effect, her whole-damn-
company working for her!company working for her!

104. C(I) > C(E)C(I) > C(E)
Lunch!Lunch!
Kudos!Kudos!
MORE kudos!MORE kudos!
Learning/Presence/PresentationsLearning/Presence/Presentations
Insider facetime with C(E)Insider facetime with C(E)
TransparencyTransparency
AwardsAwards
Co-locate/e.g. Geologists-Co-locate/e.g. Geologists-
GeophysicistsGeophysicists
Time!!!!!!!!!!!!!!!!!!!!!!!!!!Time!!!!!!!!!!!!!!!!!!!!!!!!!!
Motherhood (“If I don’t take creditMotherhood (“If I don’t take credit
but give it to others …”) (Givebut give it to others …”) (Give othersothers
credit. The sale still goes oncredit. The sale still goes on youryour
ticket.)ticket.)

105. GIVE THE “OTHERGIVE THE “OTHER
GUYS” THE CREDITGUYS” THE CREDIT
FOR EVERY-DAMN-FOR EVERY-DAMN-
THING AS ATHING AS A
MATTER OFMATTER OF
COURSE—NEVERCOURSE—NEVER
EVER FORGETEVER FORGET
THIS.THIS.

106. E.g. …E.g. …
Give your internal customers facetimeGive your internal customers facetime
with your external customers; usually awith your external customers; usually a
big turn on for those “stuck inside.”big turn on for those “stuck inside.”
SPEND TIME WITH C(I)s.SPEND TIME WITH C(I)s.
TIME SPENT RULES!TIME SPENT RULES!
Don’t “give credit where credit isDon’t “give credit where credit is
due”—give creditdue”—give credit veryvery far andfar and veryvery
wide andwide and
veryvery deep anddeep and veryvery often for “tinyoften for “tiny
acts of assistance.”acts of assistance.”

107. 4.2.84.2.8 “SUCK“SUCK DOWNDOWN
FORFOR
SUCCESS!”SUCCESS!”

108. LoserLoser:: “He’s such a“He’s such a
suck-up!”suck-up!”
WinnerWinner:: “He’s such a“He’s such a
suck-suck-
down.”down.”

109. Likewise, regarding those “internalLikewise, regarding those “internal
customers,” it’s the ones who do thecustomers,” it’s the ones who do the
“real work”—two or three levels“real work”—two or three levels
“down”—who in fact deliver the goods“down”—who in fact deliver the goods
((youryour goods). Hence showeringgoods). Hence showering
attention on those “lesser” folksattention on those “lesser” folks
(“sucking down”)(“sucking down”) is a painstaking butis a painstaking but
veryvery veryvery high-yieldhigh-yield
strategy.strategy.
AndAnd,, in my experience, rewarding asin my experience, rewarding as
hell personally.hell personally.

110. ““Success doesn’t depend on theSuccess doesn’t depend on the
number of people you know; itnumber of people you know; it
depends on the number of peopledepends on the number of people
you know inyou know in hihigghh places!”places!”
oror
“Success doesn’t depend on the“Success doesn’t depend on the
number of people you know; itnumber of people you know; it
depends on the number of peopledepends on the number of people
you know inyou know in lowlow places!”places!”

111. ““Wide and deep” “low places”Wide and deep” “low places”
network wins over the long haul.network wins over the long haul.
(FYI, one more time:(FYI, one more time: WomenWomen areare
typically better [much better?] at thistypically better [much better?] at this
than men, not so hung up on hierarchy,than men, not so hung up on hierarchy,
don’t worry so much about “whodon’t worry so much about “who
outranks whom.” I was instructed onoutranks whom.” I was instructed on
this years ago by a wildly successfulthis years ago by a wildly successful
ATT system salesATT system sales MANMAN.. “Women,”“Women,” hehe
said,said, “but not men, are willing to“but not men, are willing to
invest in the network several levelsinvest in the network several levels
down in the customer organizationdown in the customer organization .”).”)

112. George CrileGeorge Crile (Charlie Wilson’s War)(Charlie Wilson’s War) on Guston Gust
Avrakotos’ strategy:Avrakotos’ strategy: “He had“He had
become somethingbecome something
of a legend withof a legend with
these pthese peoeopple whole who
manned themanned the
underbellunderbelly of they of the
Agency [CIA].”Agency [CIA].”

113. The CIA mover and shaker inThe CIA mover and shaker in CharlieCharlie
Wilson’s WarWilson’s War was not all that senior,was not all that senior,
and was on the outs with the big bigand was on the outs with the big big
guys in the agency.guys in the agency.
Nonetheless, he was able to moveNonetheless, he was able to move
heaven and earth because he had theheaven and earth because he had the
whole damn “underbelly” of the agencywhole damn “underbelly” of the agency
doing his bidding—because he haddoing his bidding—because he had
invested so much time and energy ininvested so much time and energy in
these invisible folks over the years. (Ithese invisible folks over the years. (I
repeat: He was reaping the rewards ofrepeat: He was reaping the rewards of
aa longtermlongterm investment strategy!)investment strategy!)

114. ““I got to know hisI got to know his [Icahn’s][Icahn’s]
secretaries. They aresecretaries. They are
always the keepers ofalways the keepers of
everything.”everything.”
—Dick Parsons, then CEO Time Warner,—Dick Parsons, then CEO Time Warner,
on dealing with an Icahn threat to his companyon dealing with an Icahn threat to his company
“Parsons is not a“Parsons is not a
visionary. He is, instead,visionary. He is, instead,
a master in the art ofa master in the art of
relationship.”relationship.”
—Bloomberg BusinessWeek (03.11)—Bloomberg BusinessWeek (03.11)

115. ““I got toI got to
know hisknow his
secretaries.secretaries.
””
—Dick Parsons—Dick Parsons
(as CEO Time Warner, on successfully dealing with Carl Icahn)(as CEO Time Warner, on successfully dealing with Carl Icahn)

116. Utterly fascinating that the …Utterly fascinating that the …
CEO OF TIME WARNERCEO OF TIME WARNER … would… would
say thatsay that “getting to know the“getting to know the
secretaries”secretaries” was a/the key towas a/the key to
success, in this case dealing withsuccess, in this case dealing with
the tough-as-nails Carl Icahn.the tough-as-nails Carl Icahn.
(“Sucking down” is not just a strategy(“Sucking down” is not just a strategy
used by those in the middle of anused by those in the middle of an
organization, such as Gust Avrakotos—organization, such as Gust Avrakotos—
see above.)see above.)

117. If you can makeIf you can make
someone junior tosomeone junior to
you look good toyou look good to
their boss—youtheir boss—you
will have made awill have made a
friend for life!friend for life!

118. II knowknow this.this.
I’veI’ve knownknown this.this.
ApproximatelyApproximately foreverforever..
But I observed it again recently.But I observed it again recently.
I more or less “incidentally” saidI more or less “incidentally” said
something very positive to the boss ofsomething very positive to the boss of
an event staffer who was new.an event staffer who was new.
The help that subsequently came myThe help that subsequently came my
way was …way was … HOLY MOLYHOLY MOLY !!
(A great reminder.)(A great reminder.)

119. ““SUCKSUCK DOWNDOWN
FORFOR
SUCCESS!”SUCCESS!”

120. !!!!

121. ““His habit was to let theHis habit was to let the
locals get primary credit—locals get primary credit—
unheard of! Sometimes heunheard of! Sometimes he
disappeared into thedisappeared into the
woodwork entirely. He hadwoodwork entirely. He had
the whole __PD workingthe whole __PD working
their butts off for him,their butts off for him,
including theincluding the [temperamental][temperamental]
Chief.”Chief.” —close colleague of senior federal—close colleague of senior federal
law enforcement officerlaw enforcement officer

122. Federal law enforcement agencies have a longFederal law enforcement agencies have a long
history of looking down upon non-federal lawhistory of looking down upon non-federal law
enforcement groups—e.g. city cops. One veryenforcement groups—e.g. city cops. One very
senior federal regional law-enforcement execsenior federal regional law-enforcement exec
changed all that. He did a lot of teaming withchanged all that. He did a lot of teaming with
the local police force, but when, say, a jointthe local police force, but when, say, a joint
arrest was made, he and his guys would slip toarrest was made, he and his guys would slip to
the rear and let the locals get the lion’s sharethe rear and let the locals get the lion’s share
of the credit. (Typically the opposite path isof the credit. (Typically the opposite path is
followed—no matter what, the feds takefollowed—no matter what, the feds take
approximately 100% of credit.) The cost to theapproximately 100% of credit.) The cost to the
fed cop exec was ZERO; and as my informantfed cop exec was ZERO; and as my informant
put it, he effectively had the local cops eatingput it, he effectively had the local cops eating
out of his hand, which magnified his ability toout of his hand, which magnified his ability to
get the job done—get the job done— all this from pushingall this from pushing
someone “below” him to the front for a photo-someone “below” him to the front for a photo-
op.op.

123. S = ƒ(#&DR; -2L, -3L, -4L, I&E)S = ƒ(#&DR; -2L, -3L, -4L, I&E)
Success is a function of: Number and depth ofSuccess is a function of: Number and depth of
relationships 2, 3, and 4 levels down inside andrelationships 2, 3, and 4 levels down inside and
outside the organizationoutside the organization
S = ƒ(SD>SU)S = ƒ(SD>SU)
Sucking down is more important than sucking up—theSucking down is more important than sucking up—the
idea is to have the (your) entire organization workingidea is to have the (your) entire organization working
for youfor you
S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)
Number of friends, number of lunches with people notNumber of friends, number of lunches with people not
in my functionin my function
S = ƒ(#XFL/m)S = ƒ(#XFL/m)
Number of lunches with colleagues in otherNumber of lunches with colleagues in other
functions per monthfunctions per month
S = ƒ(#FF)S = ƒ(#FF)
Number of friends in the finance organizationNumber of friends in the finance organization

124. At one point, engineer-by-training thatAt one point, engineer-by-training that
I am, I put “all this” in equation formI am, I put “all this” in equation form
for the sheer hell of it.*for the sheer hell of it.*
All yours …All yours …
(*There were dozens of these equations—I just(*There were dozens of these equations—I just
pulled out a couple here. The full set ispulled out a couple here. The full set is
included asincluded as Appendix IVAppendix IV in Part 23 of thisin Part 23 of this
presentation.)presentation.)

125. SS
=ƒ(#PK“=ƒ(#PK“WW”P)”P)
S =S =
ƒ(#PK“ƒ(#PK“LL”P)”P)
# of people you know in the# of people you know in the
“wrong”“wrong”
placesplaces
# of people you know in “low”# of people you know in “low”

126. 4.2.94.2.9 ALL HAIL …ALL HAIL …
THOSETHOSE
WHOWHO
HELPHELP

127. More than “performanceMore than “performance
evaluation/award”evaluation/award”
More than “team accomplishmentMore than “team accomplishment
evaluation/award.”evaluation/award.”
Rather:Rather: Specific and frequent andSpecific and frequent and
VISIBLE recognition to INDIVIDUALSVISIBLE recognition to INDIVIDUALS
who have helped INDIVIDUALS inwho have helped INDIVIDUALS in
other functions—or, for that matter,other functions—or, for that matter,
our own group. E.g.our own group. E.g. BIG VISIBLEBIG VISIBLE
RECOGNITIONRECOGNITION
for sfor sppecific acts, small acts moreecific acts, small acts more
than larthan largge acts, of selflesslye acts, of selflessly
helhelppiningg othersothers pper seer se..

128. THEY ALL GOTTATHEY ALL GOTTA SEESEE THETHE
ONE WHO SACRIFICEDONE WHO SACRIFICED
TO HELP SOMEONETO HELP SOMEONE
GETGET IMMEDIATEIMMEDIATE
FEEDBACK-KUDOS.FEEDBACK-KUDOS.
(PERHAPS(PERHAPS MOREMORE
RECOGNITION THAN THERECOGNITION THAN THE
“PRINCIPAL” “DOER.”)“PRINCIPAL” “DOER.”)

129. Oddly enough, this riff was triggered byOddly enough, this riff was triggered by
watching a group of about 10 youngwatching a group of about 10 young
singers perform. Truth is, they are verysingers perform. Truth is, they are very
competitive; and there will be wellcompetitive; and there will be well
short of 100% winners. Yet as oneshort of 100% winners. Yet as one
sang, the others supported her withsang, the others supported her with
their body language.their body language. Or not.Or not.
It occurred to me that theIt occurred to me that the pprimorimo
heroes, in some sense, were those whoheroes, in some sense, were those who
selflesslselflesslyy and wholeheartedland wholeheartedl yy
susupppported theirorted their ppeerseers..
Likewise, in multi-function projectLikewise, in multi-function project
work, the “heroes” who ought to havework, the “heroes” who ought to have
the most immediate attentionthe most immediate attention
showered on them are arguably theshowered on them are arguably the
selfless helpers from other functions.selfless helpers from other functions.

130. ““Little”Little” >>>>
“Big”“Big”

131. THIS TALE OFTHIS TALE OF SMALLSMALL IS VERY VERYIS VERY VERY BIGBIG..
It’s not “Thank you” for making theIt’s not “Thank you” for making the
million-dollar sale that matters. (That’smillion-dollar sale that matters. (That’s
going to happen regardless.) It’s, to usegoing to happen regardless.) It’s, to use
One-Minute Manager/Ken Blanchard’sOne-Minute Manager/Ken Blanchard’s
term, “catching someone doingterm, “catching someone doing
something [somesomething [some littlelittle thing] right.”thing] right.”
And to the recipient, theAnd to the recipient, the spontaneousspontaneous
“little ones” have higher impact than“little ones” have higher impact than
the biggies.the biggies.
(Please re-read:(Please re-read: SMALLSMALL >>>> BigBig.. ))

132. ALL HAIL …ALL HAIL …
THOSETHOSE
WHOWHO
HELP!HELP!

133. 4.2.104.2.10 Core ValueCore Value !!

134. Suggested addition to your statement ofSuggested addition to your statement of
Core Values:Core Values: “We will not rest until“We will not rest until
seamless cross-functionalseamless cross-functional
integration/communication hasintegration/communication has
become our primary source ofbecome our primary source of
value-value-addedadded. EXCELLENCE in. EXCELLENCE in
cross-functional integrationcross-functional integration
shall become ashall become a daildailyy oopperationalerational
ppassionassion for 100% of us.”for 100% of us.”

135. XFX … pure and simple … should beXFX … pure and simple … should be
aa ((the #1?the #1? )) Core Value!Core Value!

136. GERALD SEYMOUR.GERALD SEYMOUR.
JOHN LE CARRÉ.JOHN LE CARRÉ.

137. When writing this I happened to be reading twoWhen writing this I happened to be reading two
“thrillers” from perhaps the two best and best“thrillers” from perhaps the two best and best
schooled thriller writers around—John Le Carréschooled thriller writers around—John Le Carré
and Gerald Seymour.and Gerald Seymour.
The “war” of “The “war” of “ ggoodood gguys” vs. “baduys” vs. “bad gguys” theuys” theyy
dedeppict with chillinict with chillin gg accuracaccuracyy is less aboutis less about
nailinnailingg the illethe illeggal arms dealer or sal arms dealer or s ppy than it isy than it is
about the skabout the skyy-hi-higgh costs of the war betweenh costs of the war between
bureaucracies that often lead to losinbureaucracies that often lead to losin gg thethe
enemenemy—y—and killinand killingg off or disoff or disggracing “our ownracing “our own
gguuyyss.”.”
Fiction?Fiction?
Yes.Yes.
True?True?
Alas:Alas: YES!!YES!!
Such terrifying realities are why this sectionSuch terrifying realities are why this section
on the power of Excellence in Cross-functionalon the power of Excellence in Cross-functional
communication and cooperation is ofcommunication and cooperation is of
surpassing importance.surpassing importance.

138. 4.2.114.2.11 Get Serious:Get Serious:
XFX NowXFX Now !!

139. THE WHOLE POINT HERE IS THATTHE WHOLE POINT HERE IS THAT “XFX”“XFX” ISIS
ALMOST CERTAINLY THEALMOST CERTAINLY THE #1#1 OPPORTUNITYOPPORTUNITY
FORFOR STRATEGIC DIFFERENTIATIONSTRATEGIC DIFFERENTIATION . WHILE. WHILE
MANY WOULD LIKELY AGREE, IN OURMANY WOULD LIKELY AGREE, IN OUR
MOMENT-TO-MOMENT AFFAIRS, XFX PER SE ISMOMENT-TO-MOMENT AFFAIRS, XFX PER SE IS
NOT SO OFTEN VISIBLY & PERPETUALLY ATNOT SO OFTEN VISIBLY & PERPETUALLY AT
THETHE TOPTOP OF EVERY AGENDA. I ARGUE HEREOF EVERY AGENDA. I ARGUE HERE
FOR NO LESS THAN …FOR NO LESS THAN …
VISIBLEVISIBLE..
CONSTANTCONSTANT..
OBSESSIONOBSESSION ..

140. As in, what—As in, what— specificallyspecifically—are you—are you
going to do about “it”/XFX in the nextgoing to do about “it”/XFX in the next
……
HOURHOUR??
DAY?DAY?
WEEK?WEEK?
MONTH?MONTH?
90 DAYS?90 DAYS?
2 YEARS?2 YEARS?

141. XFX.XFX.
TOP PRIORITY.TOP PRIORITY.
TOP OF MIND.TOP OF MIND.
EXPLICIT.EXPLICIT.
#1.#1.
NOW.NOW.
TODAY/TOMORROW.TODAY/TOMORROW.
#1 = #1.#1 = #1.
NOW = NOW.NOW = NOW.

142. Clear enough?Clear enough?

143. XFX.XFX.
#1.#1.
NOWNOW..

144. ONE DAMNONE DAMN
ACT OF XFXACT OF XFX
ENHANCEMENTENHANCEMENT
EVERYEVERY DAY!DAY!

145. Idea of this section. Cross-functionalIdea of this section. Cross-functional
EXCELLENCE per se …EXCELLENCE per se … “Top of mind”“Top of mind” ……
every day.every day.
E.g. Do a minimum of …E.g. Do a minimum of … ONE CONCRETE THINGONE CONCRETE THING
EVERY DAYEVERY DAY …to enhance XFX:…to enhance XFX:
Lunch with someone in another function.Lunch with someone in another function.
A half-dozen thank you notes (or even one) toA half-dozen thank you notes (or even one) to
someone/s in another function who helped you orsomeone/s in another function who helped you or
your team—probably a “suck down note” toyour team—probably a “suck down note” to
someone in the trenches who helped.someone in the trenches who helped.
FLOWERS to someone. Probably not very senior,FLOWERS to someone. Probably not very senior,
in another function to acknowledge help.in another function to acknowledge help.
Etc.Etc.

146. 4.2.134.2.13 Case:Case:
100X100X

147. "When I was in medical"When I was in medical
school, I spent hundreds ofschool, I spent hundreds of
hours looking into ahours looking into a
microscope—a skill I nevermicroscope—a skill I never
needed to know or ever use.needed to know or ever use.
Yet I didn't have a single
class that taught me
communication or teamwork
skills—something I need every
day I walk into the hospital.”
—Peter Pronovost,—Peter Pronovost, Safe Patients, Smart HospitalsSafe Patients, Smart Hospitals

148. Alas, hospitals are about the worst ofAlas, hospitals are about the worst of
the lot when it comes to XFX, which ofthe lot when it comes to XFX, which of
course is built upon the bedrock of acourse is built upon the bedrock of a
teamwork “culture.” Peter Pronovost,teamwork “culture.” Peter Pronovost,
developer of the checklist approach todeveloper of the checklist approach to
patient safety that has savedpatient safety that has saved
countless lives, learned early on thatcountless lives, learned early on that
this hyper-powerful tool is largelythis hyper-powerful tool is largely
impotent in the face of hospital casteimpotent in the face of hospital caste
systems—perhaps the ultimate insystems—perhaps the ultimate in
cross-functional barriers.cross-functional barriers.
For one thing, as Dr. Pronovost saysFor one thing, as Dr. Pronovost says
here, docs are not trained in this “softhere, docs are not trained in this “soft
stuff.”stuff.”
It does not have to be this way …It does not have to be this way …

149. ““TeamworkTeamwork
isn’tisn’t
optional.”optional.” ——Fast CompanyFast Company
on the Mayo Clinic, from Leonard Berry & Kent Seltman,on the Mayo Clinic, from Leonard Berry & Kent Seltman, “Practicing Team“Practicing Team
MedicineMedicine,,””
title, Chapter 3 oftitle, Chapter 3 of Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

150. William Mayo,William Mayo, 19101910, on the, on the
Clinic’s Two Core Values:Clinic’s Two Core Values:
Patient-centered carePatient-centered care
Team medicineTeam medicine
(“medicine as a(“medicine as a
co-operativeco-operative
science”)science”)

151. The pick of the litter on “teamThe pick of the litter on “team
medicine” is arguably the Mayo Clinic.medicine” is arguably the Mayo Clinic.
“Culture”? The “team culture” is in“Culture”? The “team culture” is in
Mayo’s genes!Mayo’s genes!

152. ““Competency isCompetency is
irrelevant if weirrelevant if we
don’t sharedon’t share
common values.”common values.” —Mayo—Mayo
Clinic exec, from Leonard Berry & Kent Seltman, “Orchestrating the Clues ofClinic exec, from Leonard Berry & Kent Seltman, “Orchestrating the Clues of
Quality,” Chapter 7 fromQuality,” Chapter 7 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

153. Competence anywhere is hugelyCompetence anywhere is hugely
important—especially, by definition, inimportant—especially, by definition, in
the hospital. Yet Mayo is clear:the hospital. Yet Mayo is clear:
Competence is damned important—butCompetence is damned important—but
it comes second.it comes second.

154. ““A Mayo surgeon recalled an incident thatA Mayo surgeon recalled an incident that
occurred shortly after he had joined the Mayooccurred shortly after he had joined the Mayo
surgical staff. He was seeing patients in the Clinicsurgical staff. He was seeing patients in the Clinic
one afternoon when he received from one of theone afternoon when he received from one of the
most experienced and renowned surgeons on themost experienced and renowned surgeons on the
Mayo Clinic staff. The senior surgeon stated overMayo Clinic staff. The senior surgeon stated over
the phone that that he was in the operating roomthe phone that that he was in the operating room
performing a complex procedure. He explained theperforming a complex procedure. He explained the
findings and asked his junior colleague whether orfindings and asked his junior colleague whether or
not what he, the senior was planning seemednot what he, the senior was planning seemed
appropriate.appropriate. TheThe jjunior surunior surggeon waseon was
dumbfounded that that he woulddumbfounded that that he would
receive a call like thisreceive a call like this .. Nonetheless, aNonetheless, a
few minutes of discussion ensued, a decision wasfew minutes of discussion ensued, a decision was
made, and the senior surgeon proceeded with themade, and the senior surgeon proceeded with the
operation. … A major consequence was that theoperation. … A major consequence was that the
junior surgeon learned the importance of inter-junior surgeon learned the importance of inter-
operative consultation for the patient’s benefitoperative consultation for the patient’s benefit
even among surgeons with many years of surgicaleven among surgeons with many years of surgical

155. Wow!Wow!
Talk about busting the caste system!Talk about busting the caste system!

156. ““I amI am hundreds ofhundreds of
times better heretimes better here
[than[than
in my prior hospital assignment]in my prior hospital assignment] becausebecause
of the support system.of the support system.
It’s likeIt’s like yyou are workinou are workingg
in an orin an orgganism;anism; yyou areou are
not a sinnot a singgle cell whenle cell when
yyou are out thereou are out there
ppracticinracticingg.”.” —quote from Dr. Nina Schwenk, in Chapter 3,—quote from Dr. Nina Schwenk, in Chapter 3,

157. …… hundredshundreds
of timesof times
better herebetter here
……

158. XFX!XFX!
100100X!X!
Wow!Wow!

159. AppendixAppendix
THE “XF-50”: 50 WAYS TOTHE “XF-50”: 50 WAYS TO
ENHANCEENHANCE
CROSS-FUNCTIONALCROSS-FUNCTIONAL
EFFECTIVENESSEFFECTIVENESS ANDAND
DELIVER SPEED,DELIVER SPEED,
“SERVICE EXCELLENCE”“SERVICE EXCELLENCE”
AND “VALUE-ADDEDAND “VALUE-ADDED
CUSTOMER ‘SOLUTIONS’”CUSTOMER ‘SOLUTIONS’”

160. I put this list together a few years ago.I put this list together a few years ago.
About as relevant as ever.About as relevant as ever.

161. 1.1. It’s our organization to make work—or not. It’s notIt’s our organization to make work—or not. It’s not
“them,” the outside world that’s the problem.“them,” the outside world that’s the problem. TheThe
enemy is us.enemy is us. Period.Period.
2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent
“power freaks.” We are all—every one of us—in the Friction Removal Business, one“power freaks.” We are all—every one of us—in the Friction Removal Business, one
moment at a time, now and forevermore.moment at a time, now and forevermore.
3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing OffenseAutomatic Firing Offense . Period.. Period.
No appeals. (Within the limits of civility, somewhat “public” firings are not out of theNo appeals. (Within the limits of civility, somewhat “public” firings are not out of the
question—that is, make one and all aware why the axe fell.)question—that is, make one and all aware why the axe fell.)
4.4. EverythingEverything on the Web. This helps. A lot. (“Everything” = Big word.)on the Web. This helps. A lot. (“Everything” = Big word.)
5. Open access. All available to all. Transparency, beyond a level that’s “sensible,”5. Open access. All available to all. Transparency, beyond a level that’s “sensible,”
is a de facto imperative in a Burn-the-Silos strategy.is a de facto imperative in a Burn-the-Silos strategy.
6.6. Project managers rule!!Project managers rule!! Project managers running XFProject managers running XF
(cross-functional) projects are the Elite of the(cross-functional) projects are the Elite of the
organization, and seen as such and treated as such.organization, and seen as such and treated as such.
(The likes of construction companies have practiced(The likes of construction companies have practiced
this more or less forever.)this more or less forever.)
7. “Value-added Proposition” = Application of integrated resources. (From the entire7. “Value-added Proposition” = Application of integrated resources. (From the entire
supply-chain.) To deliver on our emergent business raison d'être, and compete withsupply-chain.) To deliver on our emergent business raison d'être, and compete with
the likes of our Chinese and Indian brethren, we must co-operate with anybody andthe likes of our Chinese and Indian brethren, we must co-operate with anybody and
everybody “24/7.” IBM, UPS and many, many others are selling far more than aeverybody “24/7.” IBM, UPS and many, many others are selling far more than a
product or service that works—the new “it” is pure and simple a product of XF co-product or service that works—the new “it” is pure and simple a product of XF co-
operation; “the productoperation; “the product isis the co-operation” is not much of a stretch.the co-operation” is not much of a stretch.

162. 8.8. “XF work” is the direct work of leaders!“XF work” is the direct work of leaders!
9.9. “Integrated solutions” = Our “Culture.”“Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.)(Therefore: XF = Our culture.)
10. Partner with “best-in-class” only. Their pursuit of Excellence helps10. Partner with “best-in-class” only. Their pursuit of Excellence helps
us get beyond petty bickering. An all-star team has little time forus get beyond petty bickering. An all-star team has little time for
anything other than delivering on the (big) Client promise.anything other than delivering on the (big) Client promise.
11.11. All functions are created equal!All functions are created equal! All functions contribute equally! AllAll functions contribute equally! All
= All.= All.
12. All functions are “PSFs,” Professional Service Firms.12. All functions are “PSFs,” Professional Service Firms.
“Professionalism” is the watchword—and true Professionals rise above“Professionalism” is the watchword—and true Professionals rise above
turf wars. You are your projects, your legacy is your projects—and theturf wars. You are your projects, your legacy is your projects—and the
legacy will be skimpy indeed unless you pass, with flying colors, thelegacy will be skimpy indeed unless you pass, with flying colors, the
“works well with others” exam!“works well with others” exam!
13.13. We are all in sales!We are all in sales! We all (a-l-l) “sell” those Integrated ClientWe all (a-l-l) “sell” those Integrated Client
Solutions. Good salespeople don’t blame others for screw-ups—the ClintSolutions. Good salespeople don’t blame others for screw-ups—the Clint
doesn’t care. Good salespeople are “quarterbacks” who make thedoesn’t care. Good salespeople are “quarterbacks” who make the
system work-deliver.system work-deliver.
14.14. We all invest in “wiring” the Client organizationWe all invest in “wiring” the Client organization
—we develop comprehensive relationships in every—we develop comprehensive relationships in every
part (function, level) of the Client’s organization.part (function, level) of the Client’s organization.
We pay special attention to the so-called “lowerWe pay special attention to the so-called “lower
levels,” short on glamour, long on the ability tolevels,” short on glamour, long on the ability to
make things happen at the “coalface.”make things happen at the “coalface.”
15. We all “live the Brand”—which is Delivery of Matchless Integrated15. We all “live the Brand”—which is Delivery of Matchless Integrated
Solutions which transform the Client’s organization. To “live the brand”Solutions which transform the Client’s organization. To “live the brand”
is to become a raving fan of XF co-operation.is to become a raving fan of XF co-operation.

163. 16. We use the word16. We use the word “partner”“partner” until we want to barf! (Wordsuntil we want to barf! (Words
matter! A lot!)matter! A lot!)
17. We use the word17. We use the word “team”“team” until we want to barf. (Wordsuntil we want to barf. (Words
matter! A lot!)matter! A lot!)
18. We use the word18. We use the word “us”“us” until we want to barf. (Words matter!until we want to barf. (Words matter!
A lot!)A lot!)
19. We obsessively seek Inclusion—and abhor exclusion. We19. We obsessively seek Inclusion—and abhor exclusion. We
want more people from more places (internal, external—thewant more people from more places (internal, external—the
whole “supply chain”) aboard in order to maximize systemicwhole “supply chain”) aboard in order to maximize systemic
benefits.benefits.
20. Buttons & Badges matter—we work relentlessly at team (XF20. Buttons & Badges matter—we work relentlessly at team (XF
team) identity and solidarity. (“Corny”? Get over it.)team) identity and solidarity. (“Corny”? Get over it.)
21.21. All (almost all) rewards are team rewards.All (almost all) rewards are team rewards.
22. We keep base pay rather low—and give whopping bonuses22. We keep base pay rather low—and give whopping bonuses
for excellent team delivery of “seriously cool” cross-functionalfor excellent team delivery of “seriously cool” cross-functional
Client benefits.Client benefits.
23.23. WE NEVER BLAME OTHER PARTS OF THEWE NEVER BLAME OTHER PARTS OF THE
ORGANIZATION FOR SCREWUPSORGANIZATION FOR SCREWUPS ..
24.24. WE TAKE THE HEAT—THE WHOLE TEAM. (ForWE TAKE THE HEAT—THE WHOLE TEAM. (For
anything and everything.) (Losing, like winning, isanything and everything.) (Losing, like winning, is
a team affair.)a team affair.)
25.25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE.“BLAMING” IS AN AUTOMATIC FIRING OFFENSE.
26.26. “Women rule.”“Women rule.” Women are simply better at the XFWomen are simply better at the XF
communications stuff—less power obsessed, less hierarchicallycommunications stuff—less power obsessed, less hierarchically
inclined, more group-team oriented.inclined, more group-team oriented.

164. 27. Every member of our team is an honored contributor. “XF project27. Every member of our team is an honored contributor. “XF project
Excellence” is an “all hands” affair.Excellence” is an “all hands” affair.
28. We28. We areare our XF Teams! XF project teams are how we get thingsour XF Teams! XF project teams are how we get things
done.done.
29. “Wow Projects” rule, large or small—Wow projects demand by29. “Wow Projects” rule, large or small—Wow projects demand by
definition XF Excellence.definition XF Excellence.
30. We routinely attempt to unearth and then reward “small gestures”30. We routinely attempt to unearth and then reward “small gestures”
of XF co-operation.of XF co-operation.
31. We invite Functional Bigwigs to our XF project team reviews.31. We invite Functional Bigwigs to our XF project team reviews.
32. We32. We insistinsist on Client team participation—from all functions of theon Client team participation—from all functions of the
Client organization.Client organization.
33. An “Open talent market” helps make the projects “silo-free.”33. An “Open talent market” helps make the projects “silo-free.”
People want in on the project because of the opportunity to doPeople want in on the project because of the opportunity to do
something memorable—no one will tolerate delays based on traditionalsomething memorable—no one will tolerate delays based on traditional
functional squabbling.functional squabbling.
34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project
outcomes, not power-hoarding within functional boundaries.outcomes, not power-hoarding within functional boundaries.
35. New “C-level”?35. New “C-level”? We more or less need a “C-level” job titled ChiefWe more or less need a “C-level” job titled Chief
Bullshit Removal Officer.Bullshit Removal Officer. That is, some kind of formal watchdog whoseThat is, some kind of formal watchdog whose
role in life is to make cross-functionality work, and I.D. those whorole in life is to make cross-functionality work, and I.D. those who
don’t get with the program.don’t get with the program.
36.36. Huge (H-U-G-E) co-operation bonuses.Huge (H-U-G-E) co-operation bonuses. SeniorSenior
team members who conspicuously shine in theteam members who conspicuously shine in the
“working together” bit are rewarded or punished“working together” bit are rewarded or punished
Big Time. (A million bucks in one case I know—Big Time. (A million bucks in one case I know—
and a non-cooperating very senior was sacked.)and a non-cooperating very senior was sacked.)