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EXCELLENCE 2020:
THE 27 “NUMBER ONES”
Tom Peters
April 2020
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“Business has to give people
enriching, rewarding lives . . .
or it’s not worth doing.”
—Richard Branson
“Business has the
responsibility to increase the
sum of human well-being.”
—Mihaly Csikszentmihalyi, Good Business
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EXCELLENCE 2020:
THE TWENTY-SEVEN “NUMBER ONES”
Dear Colleagues,
It has been 38 years since the publication of In Search of Excellence, which was followed by
17 more books, 2,500-plus speeches, 60-plus countries, and the opportunity to meet
thousands upon thousands of people. Some were in big firms, many were in exciting small
firms. They were students and octogenarians, CEOs and school principals and fire chiefs
and preachers and electricians and housekeepers. You name it. In this brief paper, I want
to extract the essence of that work and those meetings—and those people. To distill, well,
the most important—and durable—things I have learned and, I hope, ingested. I have
connected with an extraordinary set of human beings including Southwest Airlines’ Herb
Kelleher, the inimitable Richard Branson, and the peerless Anita Roddick. I’ve spent time
with, yes, Steve Jobs and Bob Noyce and Bill Hewlett and virtually all the Silicon Valley
stars during my 20-plus years with the Tom Peters Company at 555 Hamilton Avenue in
Palo Alto.
I’d suggest that, as presented here, these ideas are not only more timely than ever (success-
drivers in the Age of AI, “disruption,” etc.), but also more or less requisite actions that
leaders—and that’s all of us (leadership is, in the end, a mindset, not a “slot” on an
organization chart, which I learned from former White House staffer Betsy Myers)—must
take now if we want something that resembles a sustainable and humane workplace.
Perhaps this is a barebones “Excellence Coda 2020.” That certainly is my hope, challenge,
and fondest wish for everyone.
Thanks for your attention,
Tom
(As I complete this paper, we are in the grasp of COVID-19. Some of the ideas here will be put
on hold. However, several are more important, far more important, than before. In particular,
the notion of a humane and compassionate and community-centric work environment—real
and/or virtual—tops the lists of “musts.” How leaders behave—right now!—will be their/your
principal life-legacy.)
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CONTENTS
THE 27 “NUMBER ONES”
1. Capital Investment #1: TRAINING. TRAINING. TRAINING.
2. Moral Obligation #1: PREPARE EMPLOYEES FOR A ROCKY FUTURE
3. Obsession #1: EXECUTION IS THE “LAST 95 PERCENT”
4. Job #1: ESTABLISH A “PEOPLE (REALLY) FIRST” CULTURE
5. Calling #1: LEADING=MAXIMIZING HUMAN POTENTIAL
6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS
7. Hiring Requirement #1: HIRE FOR EQ/EMPATHY/“SOFT” SKILLS
8. Core Value #1: LISTENING EXCELLENCE
9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES
10. State of Mind #1: ORGANIZATIONS AS VIBRANT COMMUNITIES
11. Value-Added Strategy #1: DESIGN/EXTREME HUMANIZATION
12. Value-Added Tiny Tactic #1: TGR=THINGS GONE RIGHT/SMALL>>BIG
13. Value-Added Success Credo #1: BETTER BEFORE CHEAPER
14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE
15. Business Development Opportunity #1: WOMEN BUY EVERYTHING
16. Missed Market Opportunity #1: OLDIES HAVE A-L-L THE MONEY
17. Economic Cornerstone #1: SMALL- AND MEDIUM-SIZE ENTERPRISES
18. Innovation Strategy #1: WHOEVER TRIES THE MOST STUFF WINS
19. Daily Strategic Activity #1: MANAGING BY WANDERING AROUND
20. Time Management Must #1: SLOW DOWN/50 PERCENT UNSCHEDULED TIME
21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME
22. Power Word #1: ACKNOWLEDGEMENT (AND “THANK YOU”)
23. Personal Habit #1: READ. READ. READ.
24. Toughest Task #1: SELF-MANAGEMENT
25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES
26. Axiom #1: HARD(NUMBERS+) IS SOFT. SOFT(CULTURE+) IS HARD.
27. Reflection #1: FOCUS ON “EULOGY VIRTUES”
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THE 27 “NUMBER ONES”
1. Capital Investment #1: TRAINING. TRAINING. TRAINING. Training as a Capital
Expense. As, yes, Capital Investment #1. “Radical personal development” for all = Moral
Responsibility = Immeasurable long-term strategic-differentiation opportunity = $$$$$ in
the bank. Training is 10 times more important than before in the Age of AI. Richard
Branson: “Train them well enough so that they can leave. Treat them well enough so that
they don’t want to.”
Here I present 27 “Number Ones”—but only one can come first. “Training” was an easy call.
My definition of an organization is . . . People (Leaders) Serving People (Employees) Serving
People (Customers, Communities). Yup, that’s me—38 years of shouting “people, people,
people.” And a people focus/people obsession depends—entirely—on training/preparation.
Which gets shortchanged and is perfunctory (far) more often than not. For example, does
your company, if it’s a big one, have a CTO—Chief Training Officer—as a senior “C-level”
position? Or is the training boss is a mid-level, ho-hum slot? In my world order, the “Chief
Training Officer” has a corner office on the executive floor! I’ve had a successful career. I’ve
said, when asked, “I’m often not the smartest guy in the room, but nobody but nobody can
out-prepare me”—and, arrogant or not, I believe it. Training and Preparation = #1. Let’s give
the last word to no less than Abraham Lincoln: “Give me six hours to chop down a tree, and I
will spend the first four sharpening the axe.”
2. Moral Obligation #1: TO PREPARE EVERY EMPLOYEE—PERMANENT OR
TEMPORARY—AS BEST WE CAN FOR A VERY UNCERTAIN FUTURE. If an
employee—again, temporary as well as permanent—works for us for even a month as a
temp, they should leave with new skills and an attitude that will up their odds of thriving
tomorrow . . . and the day after. Mihaly Csikszentmihalyi, in Good Business: “Business has
the responsibility to increase the sum of human well-being.”
“training, TRAINING
and M-O-R-E
T-R-A-I-N-I-N-G”
—Admiral Chester Nimitz, Commander in Chief/Pacific, communication to Chief of Naval
Operations Ernest King in 1943. Fact: The U.S. Navy was woefully underprepared at the
time of Pearl Harbor. The fix: T-R-A-I-N-I-N-G. Yes, more training was more important
than more ships at the outset of the conflict. (Note: The capitalization and punctuation and
italics in the quote above are Admiral Nimitz’s, not mine.)
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3. Obsession #1: EXECUTION IS “THE LAST 95 PERCENT.” General Omar Bradley,
commander of U.S. forces at D-Day: “Amateurs talk about strategy. Professionals talk
about logistics.” Peter Drucker: “Strategy is a commodity. Execution is an art.” Fred
Malek, my White House boss: “Execution is strategy.” Conrad Hilton’s declared Success
Secret #1: “Don’t forget to tuck the shower curtain into the bathtub.” (Come to the hotel
because of location, location, location and architecture, come back and recommend to
others because of the likes of the tucked-in shower curtain—and all that the carefully
attended curtain implies about both guest care and the respect with which we treat the
typically unheralded housekeeping staff.)
4. Job #1: ESTABLISH/MAINTAIN A CULTURE OF “EXCELLENCE BY PUTTING
PEOPLE (REALLY) FIRST.” Plausible/Profitable/Ennobling: No less than a “joyful”
workplace. Richard Sheridan: “As ridiculous as it sounds—joy is the core belief of our
workplace. Joy is the reason my software company, Menlo Innovations, exists and thrives.”
FYI: “PEOPLE (REALLY) FIRST” = CUSTOMERS FIRST = $$$$ = SOCIETAL
CONTRIBUTION. Richard Branson: “Business has to give people enriching rewarding
lives, or it’s not worth doing.” John DiJulius: “Your customers will never be happier than
your employees.”
5. Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY—
THERE IS NO HIGHER CALLING. NCAA women’s basketball star Sabrina Ionescu, at
the memorial service for Kobe Bryant, said of her mentor: “His vision for others was
always greater than what they imagined for themselves. His vision for me was way bigger
than my own. More importantly, he didn’t just show up in my life and leave. He stayed.”
And from Robert Altman’s Oscar acceptance speech, “The role of the director is to create a
space where actors and actresses can become more than they have been before, more than
they have ever dreamed of being.”(emphasis added) “Bottom line”/unequivocal: Every
manager/leader/coach absolutely has the career opportunity to dramatically and decisively
affect the lives of thousands—far more than, say, any surgeon!
“The role of the director is to
create a space where actors
and actresses can become more
than they have ever been
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before, more than they have
ever dreamed of being.”
—Robert Altman, Lifetime Achievement Oscar acceptance speech
6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS. Colonel Tom Wilhelm:
“In great armies, the job of generals is to back up their sergeants.” Fact: Worldwide, 70
percent to 85 percent of folks on any given payroll are not engaged at work. The #1 reason
by far that people quit a company is because of their boss. First Line Managers = Key #1 to
employee productivity/retention/ product-service quality/customer fan-hood/culture
maintenance. Hence: Selection/ Training/Mentoring/Heralding of first line chiefs is a Top
Strategic Priority.
7. Hiring Requirement #1: HIRE FOR EQ/EMPATHY/“SOFT” SKILLS FOR 100
PERCENT OF JOBS. Biotech CEO: “We only hire nice people.” Southwest Airlines
president emeritus Colleen Barrett: “We look for listening, caring, smiling, saying ‘Thank
you,’ being warm.”—100 percent of jobs. CEO of a world-prominent New Zealand special
effects company: “No a-holes.” Top technical skills are great as needed—but to establish a
productive, innovative, communal culture, EQ/emotional intelligence is the top
requirement. Even Google finds that to be the case. Valerie Strauss/Washington Post:
“Project Oxygen demonstrated that the seven top characteristics of individual success at
Google are all soft skills. . . . Project Aristotle shows that that the best teams at Google
exhibit a range of soft skills: equality, generosity . . .” (emphasis added) Bonus from Susan
Cain in Quiet: Hire the oft-overlooked or denigrated Quiet Ones/Introverts—they are more
creative and better leaders than their Noisy/Extrovert counterparts.
8. Core Value #1: LISTENING EXCELLENCE!!!/“FIERCE LISTENING”/
“AGGRESSIVE LISTENING” TO STAFF/CUSTOMERS/OTHERS. The most
underrated, undertrained skill in the leader’s canon is listening. Not just listening, but
intense listening. Per Susan Scott: “It’s amazing how this seemingly small thing—simply
paying fierce attention to another, really asking, really listening, even during a brief
conversation—can evoke such a wholehearted response.” Navy Captain Mike Abrashoff:
“It was painful for me to realize how often I just pretended to hear people, had barely
glanced up from my work when a subordinate came into my office. . . . I vowed to treat
every encounter with every person on the ship as the most important thing at that moment.
I decided that my job was to listen aggressively.” Richard Branson: “The key to every one
of our eight key leadership attributes was the vital importance of a leader’s ability to
listen.” (In Branson’s Like a Virgin, listening per se merits a full one-third of the book, well
over 100 pages.) Former Secretary of State Dean Rusk: “The best way to persuade
someone is with your ears.” Mark Twain: “Never miss a good chance to shut up.” Note:
Effective listening is purposeful/time-consuming/exhausting—and train-able!
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“The best way to persuade
someone is with your ears.”
—former U.S. Secretary of State Dean Rusk
“Never miss a good chance to
shut up.”
—Mark Twain
9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES.
Environmental/climate change nightmares lie just around the corner—for many, the
corner has already been turned. Business is the community. Businesses of every size and
flavor must take the lead in pursuing Extreme Sustainability Practices. For a step-by-step
guide, see The Green to Gold Business Playbook: Sustainability Practices for Bottom-Line
Results in Every Business Function. Vivienne Westwood: “Buy less. Choose well. Make it
last. Quality, not quantity.” Hunter Lovins: “Sustainability: It's the right thing to do, it's
the smart thing to do, it's the profitable thing to do.”
10. State-of-Mind #1: ORGANIZATIONS ARE FIRST AND FOREMOST
COMMUNITIES. MOREOVER, ORGANIZATIONS ARE COMMUNITIES
EMBEDDED IN COMMUNITIES. “Community” is a wondrous word. Think
“community” and your perspective moves way beyond the spreadsheet—great work, yes!
But great work from a co-operative venture devoted to every member’s flourishing. In his
superb book, Small Giants: Companies that Chose to be Great Instead of Big, Bo
Burlingham offers just four pillars of small giant success, one of which is: “Each company
had an extraordinarily intimate relationship with the local city, town, or county in which it
did business —a relationship that went well beyond the usual concept of ‘giving back.’”
11. Value-Added Strategy #1: DESIGN EXCELLENCE/EXTREME HUMANIZATION.
Apple/Laurene Powell Jobs: “Steve and Jony spent hours discussing corners.” Jony Ives:
“In some way, by caring, we are actually serving humanity. People might think it’s a stupid
belief, but it’s a goal—it’s a contribution that we hope we can make, in some small way, to
culture.” Donald Norman in Emotional Design: Why We Love (or Hate) Everyday Things
reviews the MINI Cooper S: “No vehicle in recent memory has provoked more smiles.”
Rich Karlgaard on the Nest thermostat: “. . . epic screws, screws with, dare I say it, deeper
meaning.” Thomas Merton: “The peculiar grace of a Shaker chair is due to the fact that it
was made by someone capable of believing that an angel might come and sit on it.” Rodney
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Fitch: “Only one company can be the cheapest. All others must use design.” Design
Excellence/ Extreme Humanization is Differentiator #1. It’s by and large beyond the
foreseeable reach of AI and applies to every organization and every bit of every
organization—no exceptions. (And it’s a great legacy!)
“In some way, by caring, we
are actually serving humanity.
People might think it’s a stupid
belief, but it’s a goal—it’s a
contribution that we hope we
can make, in some small way,
to culture.”
—Jony Ives, design chief, on Apple’s approach to design
“Only one company can be the
cheapest. All others must use
design.”
—Rodney Fitch
12. Value-Added Tiny Tactic #1 (“Guaranteed” to work): TGR=THINGS GONE
RIGHT/SMALL>>BIG/THE WEE TOUCHES ARE THE ONES WHICH STICK TO
OUR BRAIN—AND STAY THERE. Henry Clay: “Courtesies of a small and trivial
character are the ones which strike deepest in the grateful and appreciating heart.” Van
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Gogh: “Let’s not forget that small emotions are the great captains of our lives.” Poet
Cesare Pavese: “We do not remember the days, we remember the moments.” “Wee
touches” = TGR/Things Gone Right = Collective Differentiators that Stick and Stay and
Stand Out.
13. Value-Added Success Credo #1: THE THREE RULES: (1) BETTER BEFORE
CHEAPER. (2) REVENUE BEFORE COST. (3) THERE ARE NO OTHER RULES.
From the book THE THREE RULES: How Exceptional Companies Think. Deloitte
consultants examined the 45-year performance of 25,000 companies and identified just 27
sustained-excellence superstars—the source of “The Three Rules” above. (Success Credo
NOT #1A: Shareholder Value Maximization, brought to us by Milton Friedman, has led to
short-term thinking and dramatic, frightening dis-investment in workers—from 50 percent
of profits to 9 percent over the last four decades—and extortionate shareholder gains that
have triggered unprecedented and de-stabilizing inequality. Meanwhile, those who did
adhere to the long-term view, according to a thorough McKinsey analysis, have
dramatically out-performed their miserly short-term peers.)
14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE. Nicholas Kristof:
“Research by McKinsey & Co. suggests that to succeed, start by promoting women.”
BusinessWeek: “As Leaders, Women Rule: New studies find that female managers outshine
their male counterparts on almost every measure.” Harvard Business Review: “Women are
rated higher in fully 12 of 16 competencies that go into outstanding leadership.” Margaret
Thatcher: “In politics, if you want anything said, ask a man. If you want anything done,
ask a woman.” Bottom line: Women should have the same—or more?—representation
than men on exec teams and boards. Take note: This is a Winning Business Strategy, not
“a good thing to do.” (FYI: the research also shows that women are better negotiators,
better salespersons, and better investors.)
“Research by McKinsey & Co.
suggests that to succeed, start
by promoting women.”
—Nicholas Kristof
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“Women are rated higher in
fully 12 of 16 competencies
that go into outstanding
leadership.”
—Harvard Business Review
15. Business Development Opportunity #1: WOMEN BUY EVERYTHING. Women are
THE majority market. The Economist: “Forget China, India, and the internet: economic
growth is driven by women.” Aude Zieseniss de Thuin: “One thing is certain: Women’s
rise to power, which is linked to the increase in wealth per capita, is happening in all
domains and at all levels of society. For a number of observers, we have already entered the
Age of ‘Womenomics,’ the economy as thought out and practiced by a woman.” Women
are top purchasers in all product categories, consumer and commercial—and most
businesses still “don’t get it.” E.g., men by and large can’t design great products and
services that appeal to women. Women should in most instances dominate product-design
and marketing teams.
16. Missed Market Opportunity #1: OLDIES HAVE ALL THE MONEY. THE 50 PLUS
POPULATION IS ENORMOUS—AND OLDIES HAVE PLENTY OF TIME LEFT. Bill
Novelli: “People at 50 have more than half their adult life ahead of them.” Ken Dychtwald:
“‘Age Power’ will rule the 21st century, and we are woefully unprepared.” David Wolfe:
“The New Customer Majority, age 44–65, is the only adult market with realistic prospects
for significant sales growth in dozens of product lines for thousands of companies.” Peter
Francese: “Marketers’ attempts at reaching those over 50 have been miserably
unsuccessful.” Martha Barletta: “The financial numbers are absolutely inarguable—the
Mature Market has the money. Yet advertisers remain astonishingly indifferent to them.”
(Oldies: 50 percent of sales, 10 percent of marketing budget.) (No other way to put it:
Marketers, with rare exceptions, are idiots relative to this EOO/Extreme Oldie
Opportunity.)
17. Economic Cornerstone #1: SME = SMALL- AND MEDIUM-SIZE ENTERPRISES
RULE/“BE THE BEST, IT’S THE ONLY MARKET THAT’S NOT
CROWDED.”/SUPPORT THE SME POPULATION IN ANY WAY IMAGINABLE! SME
(1) create virtually all the new jobs, (2) employ almost all of us (3) are the prime innovators
and (4) are every economy’s backbone. The flip side: Monsters cut costs, toss people over
the side, and almost unfailingly underperform the market. SME Magic: A tiny company
(W.A. Coppins) in the tiny town of Motueka, New Zealand is the undisputed world leader
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in commercial sea anchors; In the US, Basement Systems Inc. grew to over $100 million in
revenue drying out moldy basements and turning them into playrooms or extra bedrooms.
18. Innovation Strategy #1: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS.
Extended: WTTMS(ASTMSUTF)W/WHOEVER TRIES THE MOST STUFF (AND
SCREWS THE MOST STUFF UP THE FASTEST) WINS. WTTMSW = guaranteed
innovation, but it requires a visibly supportive culture: “Try it. NOW.” Tech exec: “Fail.
Forward. Fast.” Michael Schrage: “Serious play.” Phil Daniels: “Reward excellent failures.
Punish mediocre successes.” One and all—100 percent—are in the “innovation business.”
Innovation Strategy #1A: BANISH “SAME-SAME.” John Stuart Mill: “It is hardly
possible to overrate the value of placing human beings in contact with persons dis-similar
to themselves.” Sales Guru Billy Cox: “You will become like the five people you associate
with the most—this can be either a blessing or a curse.” Gary Hamel: “The bottleneck is at
the . . . top of the bottle. Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest reverence for industry
dogma[?] . . . at the top.”
19. Daily Activity #1: MBWA = MANAGING BY WANDERING AROUND. Daily. Daily =
EVERY DAY. No excuses. Ever. And: If you don’t LOVE doing regular MBWA, choose
another career path!! MBWA is the keystone of In Search of Excellence. It stands for
leaders who are intimately in touch with the work and the people who perform the work.
Human beings>>Spreadsheets. (MBWA is a state of mind—humane, connected—not a
physical phenomenon; it works for WFH/Work From Home circumstances as much as in
physical spaces.)
“Fail faster. Succeed sooner.”
—David Kelley, founder, IDEO
“Fail. Forward. Fast.”
—High-tech CEO/Philadelphia
“Fail. Fail again. Fail better.”
—Samuel Beckett
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“Reward excellent failures.
Punish mediocre successes.”
—Phil Daniels, Australian exec/“the six words that underpinned my success”
20. Time Management Must #1: SLOW DOWN. 50 PERCENT UNSCHEDULED TIME.
All the important things—relationship building and maintenance, culture building and
maintenance, “aggressive” listening, Excellence—take lots of time. Time Management
Must #1A: DON’T OVERSCHEDULE. Intel superstar Dov Frohman: “Every leader
should routinely keep a substantial portion of his or her time—I would say as much as 50
percent—unscheduled.” (emphasis added)
21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME. Culture
Rules: Culture comes first. Culture is exceedingly difficult to change. Culture change
cannot be/must not be evaded or avoided. Culture maintenance is about as difficult as
culture change. Culture change/maintenance must become a conscious/permanent/personal
agenda item. Culture change/maintenance is manifest in “the little things” far more than in
the big things. Repeat/Culture Change/Maintenance: One day/one hour/one minute at a
time. Forever. And ever. Lou Gerstner: “If I could have chosen not to tackle the IBM
culture head-on, I probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the attitude and behaviors of
hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM
that culture isn’t just one aspect of the game—it is the game.” (emphasis added) (Ed
Schein: “Culture eats strategy for breakfast.”)
22. Power Word #1: ACKNOWLEDGEMENT (AND “THANK YOU”). William James:
“The deepest principle in human nature is the craving to be appreciated.” Ken Langone:
“The two most powerful things in existence: a kind word and a thoughtful gesture.” Betsy
Myers: “Leadership is about how you make people feel—about you, about the project or
work you’re doing together, and especially about themselves.” Mark Sanborn: “Employees
who don’t feel significant rarely make significant contributions.” And … let us bow down
to the Acknowledger-in-Chief: During his 10-year tenure as CEO of The Campbell Soup
Company, Doug Conant sent 30,000 handwritten “Thank you” notes—that translates into
12 per working day for a decade!
23. Personal Habit #1: READ. READ. READ. Investor superstar/CEO Deficiency #1: They
don’t read enough. Charlie Munger, Warren Buffett’s #2: “In my whole life, I have known
no wise people over a broad subject matter area who didn’t read all the time—none.
ZERO.” (emphasis added) Read as though your life depended on it: IT DOES!
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“If I could have chosen not to
tackle the IBM culture head-
on, I probably wouldn’t have.
My bias coming in was toward
strategy, analysis and
measurement. In comparison,
changing the attitude and
behaviors of hundreds of
thousands of people is very,
very hard. Yet I came to see in
my time at IBM that culture
isn’t just one aspect of the
game—it is the game.” (emphasis added)
—Lou Gerstner, Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround
“Culture eats strategy for breakfast.”
—Ed Schein, MIT, father of “organization culture”
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Reporter: “What matters most
to a company over time?
Strategy or culture?”
Dominic Barton, Managing
Director, McKinsey & Co.:
“Culture.”
—Interview, 2013, The Wall Street Journal
24. Toughest Task #1: SELF-MANAGEMENT. Edie Seashore: “Being aware of yourself
and how you affect everyone around you is what distinguishes a superior leader.” Marshall
Goldsmith: “To develop others, start with yourself.” Kerry Paterson: “Work on me first.”
FYI: The research is clear and consistent. Leaders’ self-perceptions stink—they are
invariably waaaay off the mark.
25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES.
OR NOTHING AT ALL. Excellence = ULTIMATE SHORT-TERM STRATEGY = Next
6-line email/Chance 3-minute impromptu real or virtual “hallway” meeting/Saying “Thank
you” for something small/Lending a helping hand for a half-hour when you’re hyper-busy.
Excellence = N-O-W = Period.
26. Axiom #1: HARD (Numbers/Plans/Org charts) IS SOFT. SOFT
(Relationships/Culture/Listening/Excellence) IS HARD. Sustaining winners: THE
EGREGIOUSLY MIS-NAMED “SOFT STUFF” COMES F-I-R-S-T!!!!!! Consider: from
Patrick Lencioni, The Advantage: Why Organizational Health Trumps Everything Else in
Business, “As I sat there listening to one presentation after another highlighting the
remarkable and unorthodox activities [people-first dogma, leadership style, communal
culture, etc.] that have made this organization so healthy, I leaned over and asked the
CEO, ‘Why in the world don’t your competitors do any of this?’ After a few seconds he
whispered, ‘I honestly believe they think it’s beneath them.’” (emphasis added) (Yikes, but
true in my experience.)
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27. Reflection #1: FOCUS ON THE “EULOGY VIRTUES.” David Brooks, The Road to
Character: “I’ve been thinking about the difference between the resume virtues and the
eulogy virtues. The resume virtues are the ones you list on your resume, the skills that you
bring to the job market and that contribute to external success. The eulogy virtues are
deeper. They’re the virtues that get talked about at your funeral, the ones that exist at the
core of your being—whether you are kind, brave, honest or faithful, what kind of
relationships you formed.” (Holds as much for your “business life” as for your “personal
life”: Fact/You will spend more hours at work than at home; so to a great degree, and like
it or not, in terms of impact on others . . . Work = Life.)
Excellence is not an
“aspiration.”
Excellence is not a “hill
to climb.”
Excellence is the next five
minutes.
(Or nothing at all.)
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EXCELLENCE 2020: THE 27 “NUMBER ONES”
EXTENDED
1. Capital Investment #1: TRAINING! TRAINING! TRAINING! BEST TRAINING WINS.
2. Moral Obligation #1: TO PREPARE EVERY EMPLOYEE—PERMANENT OR TEMPORARY—AS
BEST WE CAN FOR A VERY UNCERTAIN FUTURE.
3. Obsession #1: EXECUTION IS “THE LAST 95%.”/“STRATEGY IS A COMMODITY. EXECUTION IS
AN ART.”
4. Job #1: ESTABLISH/MAINTAIN “60/60/24/7/365”: A CULTURE OF “EXCELLENCE BY PUTTING
PEOPLE (REALLY) FIRST.”/“BUSINESS HAS TO GIVE PEOPLE ENRICHING REWARDING LIVES . .
. OR IT’S NOT WORTH DOING.”
5. Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY./THERE IS NO
HIGHER CALLING.
6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS/DRIVE ALL KEY PRODUCTIVITY-
QUALITY-ETC. VARIABLES.
7. Hiring Requirement #1: HIRE FOR EQ/“SOFT” SKILLS/100 PERCENT OF JOBS. /“WE LOOK FOR
LISTENING, CARING, SMILING, SAYING ‘THANK YOU,’ BEING WARM.”
8. Core Value #1: LISTENING EXCELLENCE!/“THE BEST WAY TO PERSUADE SOMEONE IS WITH
YOUR EARS.” (RE-READ: LISTENING EXCELLENCE AS CORE VALUE NUMBER ONE.)
9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES.
10. State of Mind #1: ORGANIZATIONS ARE FIRST AND FOREMOST
COMMUNITIES/ORGANIZATIONS ARE COMMUNITIES EMBEDDED IN COMMUNITIES.
11. Value-Added Strategy/Differentiator #1: DESIGN EXCELLENCE/R-A-D-I-C-A-L HUMANIZATION/
PRODUCTS AND SERVICES WITH SOUL. /“ONLY ONE COMPANY CAN BE THE CHEAPEST. ALL
OTHERS MUST USE DESIGN.”
12. Value-Added Tiny Tactic #1: SMALL>>BIG/THE WEE TOUCHES & GESTURES (TGR = THINGS
GONE RIGHT) ARE THE ONES WHICH STICK AND STAY IN OUR BRAINS.
13. Value-Added Success Credo #1: THE THREE RULES: (1) BETTER BEFORE CHEAPER. (2)
REVENUE BEFORE COST. (3) THERE ARE NO OTHER RULES.
14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE.
15. Business Development Opportunity #1: WOMEN BUY EVERYTHING. ACT ACCORDINGLY!
16. Missed Market Opportunity #1: OLDIES HAVE ALL THE MONEY/50 PLUS POPULATION IS
ENORMOUS/OLDIES HAVE PLENTY OF TIME LEFT/MOST MARKETERS CLUELESS..
17. Economic Cornerstone #1: SMEs RULE/EMPLOY ALMOST ALL OF US/CREATE ALMOST ALL
NEW JOBS/PRIMO INNOVATORS/SUPPORT THEM IN EVERY WAY IMAGINABLE
18. Innovation Strategy #1A: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS. Extended:
WTTMS(ASTMSUTF)W/ WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFF
UP THE FASTEST) WINS/Innovation Strategy #1B: WE ARE AS GOOD AS THE WEIRDNESS AND
VARIETY OF PEOPLE WE HANG OUT WITH.
19. Daily Strategic Activity #1: MBWA/MANAGING BY WANDERING AROUND/DAILY MBWA/ “MUST
DO COME HELL AND HIGH WATER!!”
20. Time Management Must #1: SLOW DOWN: EXCELLENCE-LISTENING-RELATIONSHIP
DEVELOPMENT, ETC. TAKE (LOTS OF) TIME/KEEP 50 PERCENT (!!) OF YOUR TIME
UNSCHEDULED
21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME
22. Power Word #1: ACKNOWLEDGMENT/“THE DEEPEST PRINCIPLE IN HUMAN NATURE IS THE
CRAVING TO BE APPRECIATED.”
23. Personal Habit #1: READ. READ. READ. READ. READ.
24. Toughest Task #1: SELF-MANAGEMENT TIPTOP LEADER ATTRIBUTE/OUR SELF-PERCEPTION
S-T-I-N-K-S.
25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES. OR NOTHING AT ALL./ THE
NEXT 6-LINE EMAIL OR SPONTANEOUS 3-MINUTE CHAT, ETC.
26. Axiom #1: HARD (numbers, plans, org charts) IS SOFT. SOFT (people, relationships, culture) IS HARD.
WINNERS EMPHASIZE THE MIS-NAMED “SOFT” VARIABLES.
27. Reflection #1: “RESUME VIRTUES” VS. “EULOGY VIRTUES”: Focus on the “eulogy virtues.”

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Twenty seven number ones.0430.2020

  • 1. 1 EXCELLENCE 2020: THE 27 “NUMBER ONES” Tom Peters April 2020
  • 2. 2 “Business has to give people enriching, rewarding lives . . . or it’s not worth doing.” —Richard Branson “Business has the responsibility to increase the sum of human well-being.” —Mihaly Csikszentmihalyi, Good Business
  • 3. 3 EXCELLENCE 2020: THE TWENTY-SEVEN “NUMBER ONES” Dear Colleagues, It has been 38 years since the publication of In Search of Excellence, which was followed by 17 more books, 2,500-plus speeches, 60-plus countries, and the opportunity to meet thousands upon thousands of people. Some were in big firms, many were in exciting small firms. They were students and octogenarians, CEOs and school principals and fire chiefs and preachers and electricians and housekeepers. You name it. In this brief paper, I want to extract the essence of that work and those meetings—and those people. To distill, well, the most important—and durable—things I have learned and, I hope, ingested. I have connected with an extraordinary set of human beings including Southwest Airlines’ Herb Kelleher, the inimitable Richard Branson, and the peerless Anita Roddick. I’ve spent time with, yes, Steve Jobs and Bob Noyce and Bill Hewlett and virtually all the Silicon Valley stars during my 20-plus years with the Tom Peters Company at 555 Hamilton Avenue in Palo Alto. I’d suggest that, as presented here, these ideas are not only more timely than ever (success- drivers in the Age of AI, “disruption,” etc.), but also more or less requisite actions that leaders—and that’s all of us (leadership is, in the end, a mindset, not a “slot” on an organization chart, which I learned from former White House staffer Betsy Myers)—must take now if we want something that resembles a sustainable and humane workplace. Perhaps this is a barebones “Excellence Coda 2020.” That certainly is my hope, challenge, and fondest wish for everyone. Thanks for your attention, Tom (As I complete this paper, we are in the grasp of COVID-19. Some of the ideas here will be put on hold. However, several are more important, far more important, than before. In particular, the notion of a humane and compassionate and community-centric work environment—real and/or virtual—tops the lists of “musts.” How leaders behave—right now!—will be their/your principal life-legacy.)
  • 4. 4 CONTENTS THE 27 “NUMBER ONES” 1. Capital Investment #1: TRAINING. TRAINING. TRAINING. 2. Moral Obligation #1: PREPARE EMPLOYEES FOR A ROCKY FUTURE 3. Obsession #1: EXECUTION IS THE “LAST 95 PERCENT” 4. Job #1: ESTABLISH A “PEOPLE (REALLY) FIRST” CULTURE 5. Calling #1: LEADING=MAXIMIZING HUMAN POTENTIAL 6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS 7. Hiring Requirement #1: HIRE FOR EQ/EMPATHY/“SOFT” SKILLS 8. Core Value #1: LISTENING EXCELLENCE 9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES 10. State of Mind #1: ORGANIZATIONS AS VIBRANT COMMUNITIES 11. Value-Added Strategy #1: DESIGN/EXTREME HUMANIZATION 12. Value-Added Tiny Tactic #1: TGR=THINGS GONE RIGHT/SMALL>>BIG 13. Value-Added Success Credo #1: BETTER BEFORE CHEAPER 14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE 15. Business Development Opportunity #1: WOMEN BUY EVERYTHING 16. Missed Market Opportunity #1: OLDIES HAVE A-L-L THE MONEY 17. Economic Cornerstone #1: SMALL- AND MEDIUM-SIZE ENTERPRISES 18. Innovation Strategy #1: WHOEVER TRIES THE MOST STUFF WINS 19. Daily Strategic Activity #1: MANAGING BY WANDERING AROUND 20. Time Management Must #1: SLOW DOWN/50 PERCENT UNSCHEDULED TIME 21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME 22. Power Word #1: ACKNOWLEDGEMENT (AND “THANK YOU”) 23. Personal Habit #1: READ. READ. READ. 24. Toughest Task #1: SELF-MANAGEMENT 25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES 26. Axiom #1: HARD(NUMBERS+) IS SOFT. SOFT(CULTURE+) IS HARD. 27. Reflection #1: FOCUS ON “EULOGY VIRTUES”
  • 5. 5 THE 27 “NUMBER ONES” 1. Capital Investment #1: TRAINING. TRAINING. TRAINING. Training as a Capital Expense. As, yes, Capital Investment #1. “Radical personal development” for all = Moral Responsibility = Immeasurable long-term strategic-differentiation opportunity = $$$$$ in the bank. Training is 10 times more important than before in the Age of AI. Richard Branson: “Train them well enough so that they can leave. Treat them well enough so that they don’t want to.” Here I present 27 “Number Ones”—but only one can come first. “Training” was an easy call. My definition of an organization is . . . People (Leaders) Serving People (Employees) Serving People (Customers, Communities). Yup, that’s me—38 years of shouting “people, people, people.” And a people focus/people obsession depends—entirely—on training/preparation. Which gets shortchanged and is perfunctory (far) more often than not. For example, does your company, if it’s a big one, have a CTO—Chief Training Officer—as a senior “C-level” position? Or is the training boss is a mid-level, ho-hum slot? In my world order, the “Chief Training Officer” has a corner office on the executive floor! I’ve had a successful career. I’ve said, when asked, “I’m often not the smartest guy in the room, but nobody but nobody can out-prepare me”—and, arrogant or not, I believe it. Training and Preparation = #1. Let’s give the last word to no less than Abraham Lincoln: “Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.” 2. Moral Obligation #1: TO PREPARE EVERY EMPLOYEE—PERMANENT OR TEMPORARY—AS BEST WE CAN FOR A VERY UNCERTAIN FUTURE. If an employee—again, temporary as well as permanent—works for us for even a month as a temp, they should leave with new skills and an attitude that will up their odds of thriving tomorrow . . . and the day after. Mihaly Csikszentmihalyi, in Good Business: “Business has the responsibility to increase the sum of human well-being.” “training, TRAINING and M-O-R-E T-R-A-I-N-I-N-G” —Admiral Chester Nimitz, Commander in Chief/Pacific, communication to Chief of Naval Operations Ernest King in 1943. Fact: The U.S. Navy was woefully underprepared at the time of Pearl Harbor. The fix: T-R-A-I-N-I-N-G. Yes, more training was more important than more ships at the outset of the conflict. (Note: The capitalization and punctuation and italics in the quote above are Admiral Nimitz’s, not mine.)
  • 6. 6 3. Obsession #1: EXECUTION IS “THE LAST 95 PERCENT.” General Omar Bradley, commander of U.S. forces at D-Day: “Amateurs talk about strategy. Professionals talk about logistics.” Peter Drucker: “Strategy is a commodity. Execution is an art.” Fred Malek, my White House boss: “Execution is strategy.” Conrad Hilton’s declared Success Secret #1: “Don’t forget to tuck the shower curtain into the bathtub.” (Come to the hotel because of location, location, location and architecture, come back and recommend to others because of the likes of the tucked-in shower curtain—and all that the carefully attended curtain implies about both guest care and the respect with which we treat the typically unheralded housekeeping staff.) 4. Job #1: ESTABLISH/MAINTAIN A CULTURE OF “EXCELLENCE BY PUTTING PEOPLE (REALLY) FIRST.” Plausible/Profitable/Ennobling: No less than a “joyful” workplace. Richard Sheridan: “As ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my software company, Menlo Innovations, exists and thrives.” FYI: “PEOPLE (REALLY) FIRST” = CUSTOMERS FIRST = $$$$ = SOCIETAL CONTRIBUTION. Richard Branson: “Business has to give people enriching rewarding lives, or it’s not worth doing.” John DiJulius: “Your customers will never be happier than your employees.” 5. Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY— THERE IS NO HIGHER CALLING. NCAA women’s basketball star Sabrina Ionescu, at the memorial service for Kobe Bryant, said of her mentor: “His vision for others was always greater than what they imagined for themselves. His vision for me was way bigger than my own. More importantly, he didn’t just show up in my life and leave. He stayed.” And from Robert Altman’s Oscar acceptance speech, “The role of the director is to create a space where actors and actresses can become more than they have been before, more than they have ever dreamed of being.”(emphasis added) “Bottom line”/unequivocal: Every manager/leader/coach absolutely has the career opportunity to dramatically and decisively affect the lives of thousands—far more than, say, any surgeon! “The role of the director is to create a space where actors and actresses can become more than they have ever been
  • 7. 7 before, more than they have ever dreamed of being.” —Robert Altman, Lifetime Achievement Oscar acceptance speech 6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS. Colonel Tom Wilhelm: “In great armies, the job of generals is to back up their sergeants.” Fact: Worldwide, 70 percent to 85 percent of folks on any given payroll are not engaged at work. The #1 reason by far that people quit a company is because of their boss. First Line Managers = Key #1 to employee productivity/retention/ product-service quality/customer fan-hood/culture maintenance. Hence: Selection/ Training/Mentoring/Heralding of first line chiefs is a Top Strategic Priority. 7. Hiring Requirement #1: HIRE FOR EQ/EMPATHY/“SOFT” SKILLS FOR 100 PERCENT OF JOBS. Biotech CEO: “We only hire nice people.” Southwest Airlines president emeritus Colleen Barrett: “We look for listening, caring, smiling, saying ‘Thank you,’ being warm.”—100 percent of jobs. CEO of a world-prominent New Zealand special effects company: “No a-holes.” Top technical skills are great as needed—but to establish a productive, innovative, communal culture, EQ/emotional intelligence is the top requirement. Even Google finds that to be the case. Valerie Strauss/Washington Post: “Project Oxygen demonstrated that the seven top characteristics of individual success at Google are all soft skills. . . . Project Aristotle shows that that the best teams at Google exhibit a range of soft skills: equality, generosity . . .” (emphasis added) Bonus from Susan Cain in Quiet: Hire the oft-overlooked or denigrated Quiet Ones/Introverts—they are more creative and better leaders than their Noisy/Extrovert counterparts. 8. Core Value #1: LISTENING EXCELLENCE!!!/“FIERCE LISTENING”/ “AGGRESSIVE LISTENING” TO STAFF/CUSTOMERS/OTHERS. The most underrated, undertrained skill in the leader’s canon is listening. Not just listening, but intense listening. Per Susan Scott: “It’s amazing how this seemingly small thing—simply paying fierce attention to another, really asking, really listening, even during a brief conversation—can evoke such a wholehearted response.” Navy Captain Mike Abrashoff: “It was painful for me to realize how often I just pretended to hear people, had barely glanced up from my work when a subordinate came into my office. . . . I vowed to treat every encounter with every person on the ship as the most important thing at that moment. I decided that my job was to listen aggressively.” Richard Branson: “The key to every one of our eight key leadership attributes was the vital importance of a leader’s ability to listen.” (In Branson’s Like a Virgin, listening per se merits a full one-third of the book, well over 100 pages.) Former Secretary of State Dean Rusk: “The best way to persuade someone is with your ears.” Mark Twain: “Never miss a good chance to shut up.” Note: Effective listening is purposeful/time-consuming/exhausting—and train-able!
  • 8. 8 “The best way to persuade someone is with your ears.” —former U.S. Secretary of State Dean Rusk “Never miss a good chance to shut up.” —Mark Twain 9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES. Environmental/climate change nightmares lie just around the corner—for many, the corner has already been turned. Business is the community. Businesses of every size and flavor must take the lead in pursuing Extreme Sustainability Practices. For a step-by-step guide, see The Green to Gold Business Playbook: Sustainability Practices for Bottom-Line Results in Every Business Function. Vivienne Westwood: “Buy less. Choose well. Make it last. Quality, not quantity.” Hunter Lovins: “Sustainability: It's the right thing to do, it's the smart thing to do, it's the profitable thing to do.” 10. State-of-Mind #1: ORGANIZATIONS ARE FIRST AND FOREMOST COMMUNITIES. MOREOVER, ORGANIZATIONS ARE COMMUNITIES EMBEDDED IN COMMUNITIES. “Community” is a wondrous word. Think “community” and your perspective moves way beyond the spreadsheet—great work, yes! But great work from a co-operative venture devoted to every member’s flourishing. In his superb book, Small Giants: Companies that Chose to be Great Instead of Big, Bo Burlingham offers just four pillars of small giant success, one of which is: “Each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business —a relationship that went well beyond the usual concept of ‘giving back.’” 11. Value-Added Strategy #1: DESIGN EXCELLENCE/EXTREME HUMANIZATION. Apple/Laurene Powell Jobs: “Steve and Jony spent hours discussing corners.” Jony Ives: “In some way, by caring, we are actually serving humanity. People might think it’s a stupid belief, but it’s a goal—it’s a contribution that we hope we can make, in some small way, to culture.” Donald Norman in Emotional Design: Why We Love (or Hate) Everyday Things reviews the MINI Cooper S: “No vehicle in recent memory has provoked more smiles.” Rich Karlgaard on the Nest thermostat: “. . . epic screws, screws with, dare I say it, deeper meaning.” Thomas Merton: “The peculiar grace of a Shaker chair is due to the fact that it was made by someone capable of believing that an angel might come and sit on it.” Rodney
  • 9. 9 Fitch: “Only one company can be the cheapest. All others must use design.” Design Excellence/ Extreme Humanization is Differentiator #1. It’s by and large beyond the foreseeable reach of AI and applies to every organization and every bit of every organization—no exceptions. (And it’s a great legacy!) “In some way, by caring, we are actually serving humanity. People might think it’s a stupid belief, but it’s a goal—it’s a contribution that we hope we can make, in some small way, to culture.” —Jony Ives, design chief, on Apple’s approach to design “Only one company can be the cheapest. All others must use design.” —Rodney Fitch 12. Value-Added Tiny Tactic #1 (“Guaranteed” to work): TGR=THINGS GONE RIGHT/SMALL>>BIG/THE WEE TOUCHES ARE THE ONES WHICH STICK TO OUR BRAIN—AND STAY THERE. Henry Clay: “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” Van
  • 10. 10 Gogh: “Let’s not forget that small emotions are the great captains of our lives.” Poet Cesare Pavese: “We do not remember the days, we remember the moments.” “Wee touches” = TGR/Things Gone Right = Collective Differentiators that Stick and Stay and Stand Out. 13. Value-Added Success Credo #1: THE THREE RULES: (1) BETTER BEFORE CHEAPER. (2) REVENUE BEFORE COST. (3) THERE ARE NO OTHER RULES. From the book THE THREE RULES: How Exceptional Companies Think. Deloitte consultants examined the 45-year performance of 25,000 companies and identified just 27 sustained-excellence superstars—the source of “The Three Rules” above. (Success Credo NOT #1A: Shareholder Value Maximization, brought to us by Milton Friedman, has led to short-term thinking and dramatic, frightening dis-investment in workers—from 50 percent of profits to 9 percent over the last four decades—and extortionate shareholder gains that have triggered unprecedented and de-stabilizing inequality. Meanwhile, those who did adhere to the long-term view, according to a thorough McKinsey analysis, have dramatically out-performed their miserly short-term peers.) 14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE. Nicholas Kristof: “Research by McKinsey & Co. suggests that to succeed, start by promoting women.” BusinessWeek: “As Leaders, Women Rule: New studies find that female managers outshine their male counterparts on almost every measure.” Harvard Business Review: “Women are rated higher in fully 12 of 16 competencies that go into outstanding leadership.” Margaret Thatcher: “In politics, if you want anything said, ask a man. If you want anything done, ask a woman.” Bottom line: Women should have the same—or more?—representation than men on exec teams and boards. Take note: This is a Winning Business Strategy, not “a good thing to do.” (FYI: the research also shows that women are better negotiators, better salespersons, and better investors.) “Research by McKinsey & Co. suggests that to succeed, start by promoting women.” —Nicholas Kristof
  • 11. 11 “Women are rated higher in fully 12 of 16 competencies that go into outstanding leadership.” —Harvard Business Review 15. Business Development Opportunity #1: WOMEN BUY EVERYTHING. Women are THE majority market. The Economist: “Forget China, India, and the internet: economic growth is driven by women.” Aude Zieseniss de Thuin: “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. For a number of observers, we have already entered the Age of ‘Womenomics,’ the economy as thought out and practiced by a woman.” Women are top purchasers in all product categories, consumer and commercial—and most businesses still “don’t get it.” E.g., men by and large can’t design great products and services that appeal to women. Women should in most instances dominate product-design and marketing teams. 16. Missed Market Opportunity #1: OLDIES HAVE ALL THE MONEY. THE 50 PLUS POPULATION IS ENORMOUS—AND OLDIES HAVE PLENTY OF TIME LEFT. Bill Novelli: “People at 50 have more than half their adult life ahead of them.” Ken Dychtwald: “‘Age Power’ will rule the 21st century, and we are woefully unprepared.” David Wolfe: “The New Customer Majority, age 44–65, is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” Peter Francese: “Marketers’ attempts at reaching those over 50 have been miserably unsuccessful.” Martha Barletta: “The financial numbers are absolutely inarguable—the Mature Market has the money. Yet advertisers remain astonishingly indifferent to them.” (Oldies: 50 percent of sales, 10 percent of marketing budget.) (No other way to put it: Marketers, with rare exceptions, are idiots relative to this EOO/Extreme Oldie Opportunity.) 17. Economic Cornerstone #1: SME = SMALL- AND MEDIUM-SIZE ENTERPRISES RULE/“BE THE BEST, IT’S THE ONLY MARKET THAT’S NOT CROWDED.”/SUPPORT THE SME POPULATION IN ANY WAY IMAGINABLE! SME (1) create virtually all the new jobs, (2) employ almost all of us (3) are the prime innovators and (4) are every economy’s backbone. The flip side: Monsters cut costs, toss people over the side, and almost unfailingly underperform the market. SME Magic: A tiny company (W.A. Coppins) in the tiny town of Motueka, New Zealand is the undisputed world leader
  • 12. 12 in commercial sea anchors; In the US, Basement Systems Inc. grew to over $100 million in revenue drying out moldy basements and turning them into playrooms or extra bedrooms. 18. Innovation Strategy #1: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS. Extended: WTTMS(ASTMSUTF)W/WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFF UP THE FASTEST) WINS. WTTMSW = guaranteed innovation, but it requires a visibly supportive culture: “Try it. NOW.” Tech exec: “Fail. Forward. Fast.” Michael Schrage: “Serious play.” Phil Daniels: “Reward excellent failures. Punish mediocre successes.” One and all—100 percent—are in the “innovation business.” Innovation Strategy #1A: BANISH “SAME-SAME.” John Stuart Mill: “It is hardly possible to overrate the value of placing human beings in contact with persons dis-similar to themselves.” Sales Guru Billy Cox: “You will become like the five people you associate with the most—this can be either a blessing or a curse.” Gary Hamel: “The bottleneck is at the . . . top of the bottle. Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma[?] . . . at the top.” 19. Daily Activity #1: MBWA = MANAGING BY WANDERING AROUND. Daily. Daily = EVERY DAY. No excuses. Ever. And: If you don’t LOVE doing regular MBWA, choose another career path!! MBWA is the keystone of In Search of Excellence. It stands for leaders who are intimately in touch with the work and the people who perform the work. Human beings>>Spreadsheets. (MBWA is a state of mind—humane, connected—not a physical phenomenon; it works for WFH/Work From Home circumstances as much as in physical spaces.) “Fail faster. Succeed sooner.” —David Kelley, founder, IDEO “Fail. Forward. Fast.” —High-tech CEO/Philadelphia “Fail. Fail again. Fail better.” —Samuel Beckett
  • 13. 13 “Reward excellent failures. Punish mediocre successes.” —Phil Daniels, Australian exec/“the six words that underpinned my success” 20. Time Management Must #1: SLOW DOWN. 50 PERCENT UNSCHEDULED TIME. All the important things—relationship building and maintenance, culture building and maintenance, “aggressive” listening, Excellence—take lots of time. Time Management Must #1A: DON’T OVERSCHEDULE. Intel superstar Dov Frohman: “Every leader should routinely keep a substantial portion of his or her time—I would say as much as 50 percent—unscheduled.” (emphasis added) 21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME. Culture Rules: Culture comes first. Culture is exceedingly difficult to change. Culture change cannot be/must not be evaded or avoided. Culture maintenance is about as difficult as culture change. Culture change/maintenance must become a conscious/permanent/personal agenda item. Culture change/maintenance is manifest in “the little things” far more than in the big things. Repeat/Culture Change/Maintenance: One day/one hour/one minute at a time. Forever. And ever. Lou Gerstner: “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” (emphasis added) (Ed Schein: “Culture eats strategy for breakfast.”) 22. Power Word #1: ACKNOWLEDGEMENT (AND “THANK YOU”). William James: “The deepest principle in human nature is the craving to be appreciated.” Ken Langone: “The two most powerful things in existence: a kind word and a thoughtful gesture.” Betsy Myers: “Leadership is about how you make people feel—about you, about the project or work you’re doing together, and especially about themselves.” Mark Sanborn: “Employees who don’t feel significant rarely make significant contributions.” And … let us bow down to the Acknowledger-in-Chief: During his 10-year tenure as CEO of The Campbell Soup Company, Doug Conant sent 30,000 handwritten “Thank you” notes—that translates into 12 per working day for a decade! 23. Personal Habit #1: READ. READ. READ. Investor superstar/CEO Deficiency #1: They don’t read enough. Charlie Munger, Warren Buffett’s #2: “In my whole life, I have known no wise people over a broad subject matter area who didn’t read all the time—none. ZERO.” (emphasis added) Read as though your life depended on it: IT DOES!
  • 14. 14 “If I could have chosen not to tackle the IBM culture head- on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” (emphasis added) —Lou Gerstner, Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround “Culture eats strategy for breakfast.” —Ed Schein, MIT, father of “organization culture”
  • 15. 15 Reporter: “What matters most to a company over time? Strategy or culture?” Dominic Barton, Managing Director, McKinsey & Co.: “Culture.” —Interview, 2013, The Wall Street Journal 24. Toughest Task #1: SELF-MANAGEMENT. Edie Seashore: “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” Marshall Goldsmith: “To develop others, start with yourself.” Kerry Paterson: “Work on me first.” FYI: The research is clear and consistent. Leaders’ self-perceptions stink—they are invariably waaaay off the mark. 25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES. OR NOTHING AT ALL. Excellence = ULTIMATE SHORT-TERM STRATEGY = Next 6-line email/Chance 3-minute impromptu real or virtual “hallway” meeting/Saying “Thank you” for something small/Lending a helping hand for a half-hour when you’re hyper-busy. Excellence = N-O-W = Period. 26. Axiom #1: HARD (Numbers/Plans/Org charts) IS SOFT. SOFT (Relationships/Culture/Listening/Excellence) IS HARD. Sustaining winners: THE EGREGIOUSLY MIS-NAMED “SOFT STUFF” COMES F-I-R-S-T!!!!!! Consider: from Patrick Lencioni, The Advantage: Why Organizational Health Trumps Everything Else in Business, “As I sat there listening to one presentation after another highlighting the remarkable and unorthodox activities [people-first dogma, leadership style, communal culture, etc.] that have made this organization so healthy, I leaned over and asked the CEO, ‘Why in the world don’t your competitors do any of this?’ After a few seconds he whispered, ‘I honestly believe they think it’s beneath them.’” (emphasis added) (Yikes, but true in my experience.)
  • 16. 16 27. Reflection #1: FOCUS ON THE “EULOGY VIRTUES.” David Brooks, The Road to Character: “I’ve been thinking about the difference between the resume virtues and the eulogy virtues. The resume virtues are the ones you list on your resume, the skills that you bring to the job market and that contribute to external success. The eulogy virtues are deeper. They’re the virtues that get talked about at your funeral, the ones that exist at the core of your being—whether you are kind, brave, honest or faithful, what kind of relationships you formed.” (Holds as much for your “business life” as for your “personal life”: Fact/You will spend more hours at work than at home; so to a great degree, and like it or not, in terms of impact on others . . . Work = Life.) Excellence is not an “aspiration.” Excellence is not a “hill to climb.” Excellence is the next five minutes. (Or nothing at all.)
  • 17. 17 EXCELLENCE 2020: THE 27 “NUMBER ONES” EXTENDED 1. Capital Investment #1: TRAINING! TRAINING! TRAINING! BEST TRAINING WINS. 2. Moral Obligation #1: TO PREPARE EVERY EMPLOYEE—PERMANENT OR TEMPORARY—AS BEST WE CAN FOR A VERY UNCERTAIN FUTURE. 3. Obsession #1: EXECUTION IS “THE LAST 95%.”/“STRATEGY IS A COMMODITY. EXECUTION IS AN ART.” 4. Job #1: ESTABLISH/MAINTAIN “60/60/24/7/365”: A CULTURE OF “EXCELLENCE BY PUTTING PEOPLE (REALLY) FIRST.”/“BUSINESS HAS TO GIVE PEOPLE ENRICHING REWARDING LIVES . . . OR IT’S NOT WORTH DOING.” 5. Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY./THERE IS NO HIGHER CALLING. 6. Asset #1: FULL PORTFOLIO OF FIRST-LINE MANAGERS/DRIVE ALL KEY PRODUCTIVITY- QUALITY-ETC. VARIABLES. 7. Hiring Requirement #1: HIRE FOR EQ/“SOFT” SKILLS/100 PERCENT OF JOBS. /“WE LOOK FOR LISTENING, CARING, SMILING, SAYING ‘THANK YOU,’ BEING WARM.” 8. Core Value #1: LISTENING EXCELLENCE!/“THE BEST WAY TO PERSUADE SOMEONE IS WITH YOUR EARS.” (RE-READ: LISTENING EXCELLENCE AS CORE VALUE NUMBER ONE.) 9. Community Obligation #1: EXTREME SUSTAINABILITY PRACTICES. 10. State of Mind #1: ORGANIZATIONS ARE FIRST AND FOREMOST COMMUNITIES/ORGANIZATIONS ARE COMMUNITIES EMBEDDED IN COMMUNITIES. 11. Value-Added Strategy/Differentiator #1: DESIGN EXCELLENCE/R-A-D-I-C-A-L HUMANIZATION/ PRODUCTS AND SERVICES WITH SOUL. /“ONLY ONE COMPANY CAN BE THE CHEAPEST. ALL OTHERS MUST USE DESIGN.” 12. Value-Added Tiny Tactic #1: SMALL>>BIG/THE WEE TOUCHES & GESTURES (TGR = THINGS GONE RIGHT) ARE THE ONES WHICH STICK AND STAY IN OUR BRAINS. 13. Value-Added Success Credo #1: THE THREE RULES: (1) BETTER BEFORE CHEAPER. (2) REVENUE BEFORE COST. (3) THERE ARE NO OTHER RULES. 14. Leadership Team “Must” #1: PUT WOMEN IN CHARGE. 15. Business Development Opportunity #1: WOMEN BUY EVERYTHING. ACT ACCORDINGLY! 16. Missed Market Opportunity #1: OLDIES HAVE ALL THE MONEY/50 PLUS POPULATION IS ENORMOUS/OLDIES HAVE PLENTY OF TIME LEFT/MOST MARKETERS CLUELESS.. 17. Economic Cornerstone #1: SMEs RULE/EMPLOY ALMOST ALL OF US/CREATE ALMOST ALL NEW JOBS/PRIMO INNOVATORS/SUPPORT THEM IN EVERY WAY IMAGINABLE 18. Innovation Strategy #1A: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS. Extended: WTTMS(ASTMSUTF)W/ WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFF UP THE FASTEST) WINS/Innovation Strategy #1B: WE ARE AS GOOD AS THE WEIRDNESS AND VARIETY OF PEOPLE WE HANG OUT WITH. 19. Daily Strategic Activity #1: MBWA/MANAGING BY WANDERING AROUND/DAILY MBWA/ “MUST DO COME HELL AND HIGH WATER!!” 20. Time Management Must #1: SLOW DOWN: EXCELLENCE-LISTENING-RELATIONSHIP DEVELOPMENT, ETC. TAKE (LOTS OF) TIME/KEEP 50 PERCENT (!!) OF YOUR TIME UNSCHEDULED 21. Hallmark #1: CULTURE MANAGEMENT/ONE MINUTE AT A TIME 22. Power Word #1: ACKNOWLEDGMENT/“THE DEEPEST PRINCIPLE IN HUMAN NATURE IS THE CRAVING TO BE APPRECIATED.” 23. Personal Habit #1: READ. READ. READ. READ. READ. 24. Toughest Task #1: SELF-MANAGEMENT TIPTOP LEADER ATTRIBUTE/OUR SELF-PERCEPTION S-T-I-N-K-S. 25. Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES. OR NOTHING AT ALL./ THE NEXT 6-LINE EMAIL OR SPONTANEOUS 3-MINUTE CHAT, ETC. 26. Axiom #1: HARD (numbers, plans, org charts) IS SOFT. SOFT (people, relationships, culture) IS HARD. WINNERS EMPHASIZE THE MIS-NAMED “SOFT” VARIABLES. 27. Reflection #1: “RESUME VIRTUES” VS. “EULOGY VIRTUES”: Focus on the “eulogy virtues.”