THE WORKS Chapter 2 Excellence

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

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

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?

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

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!

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.

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

ChapterChapter TWOTWO
EE XXCELLENCECELLENCE

I wrote a book in 1982.I wrote a book in 1982.
A few people bought it.A few people bought it.
Then, hooray, a few more. …Then, hooray, a few more. …
(One of the reasons, I remain convinced,(One of the reasons, I remain convinced,
is that more or less no one used theis that more or less no one used the
word “business” and “excellence” in theword “business” and “excellence” in the
same sentence. Excellence? Sports. Thesame sentence. Excellence? Sports. The
arts. Science. But business?? We hardlyarts. Science. But business?? We hardly
said that excellence-in-business wassaid that excellence-in-business was
the normal state of affairs. To thethe normal state of affairs. To the
contrary, we said it was ever so rare—contrary, we said it was ever so rare—
but that we thought we had found a fewbut that we thought we had found a few
exemplar firms for whom excellenceexemplar firms for whom excellence
was the watchword.)was the watchword.)

In Search of ExcellenceIn Search of Excellence /1982:/1982:
The Bedrock “Eight Basics”The Bedrock “Eight Basics”
1. A Bias for1. A Bias for ActionAction
2. Close to the2. Close to the CustomerCustomer
3.3. AutonomAutonomyy andand
EntreEntreppreneurshireneurshipp
4. Productivity Through4. Productivity Through PeoPeopplele
5.5. Hands OnHands On,, Value-DrivenValue-Driven
6.6. Stick toStick to the Knittingthe Knitting
7.7. SimSimpplele Form,Form, LeanLean StaffStaff
8. Simultaneous8. Simultaneous Loose-TightLoose-Tight
PropertiesProperties

Out of our data we teased eight “basics”Out of our data we teased eight “basics”
that we saw as the Pillars of (Business)that we saw as the Pillars of (Business)
Excellence. Discussing those basicsExcellence. Discussing those basics
was the heart of the book.was the heart of the book.

ActionAction
PeoplePeople
CustomerCustomer
ss

To be sure, the “Eight Basics.”To be sure, the “Eight Basics.”
(They’ve held up pretty darn well.)(They’ve held up pretty darn well.)
Nonetheless …Nonetheless …
In Search of ExcellenceIn Search of Excellence in …in …
44 words on the prior slide.words on the prior slide.
(Circa 1982. Circa 2016.)(Circa 1982. Circa 2016.)

PeoplePeople
ExecutionExecution
ExcellencExcellenc

PXXPXX ==
People.People.
eXecution.eXecution.
eXcellence.eXcellence.

In SearchIn Search
ofof
ExcellenceExcellence
…… inin 33 words.*words.*

Excellence.2016: The Bedrock “Ten Basics”Excellence.2016: The Bedrock “Ten Basics”
1. A Bias for1. A Bias for Action/Action/SeriousSerious
PlaPlayy//ExecutionExecution**
2.2. PeoPeopplele FirstFirst//TraininTraining-g-DevelopmentDevelopment
ManiaMania
3.3. SymbiosisSymbiosis With theWith the CustomerCustomer
4.4. AutonomAutonomy andy and EntreEntreppreneurshireneurshipp
5.5. Hands OnHands On,, Value-DrivenValue-Driven
6.6. SimSimpplele Form,Form, LeanLean Staff,Staff,
CollaborationCollaboration ImperativeImperative
7. Simultaneous7. Simultaneous Loose-TightLoose-Tight PropertiesProperties
8.8. UbiquitousUbiquitous DesiDesiggn-mindednessn-mindedness
9.9. TechnoloTechnology Fanaticismgy Fanaticism
10.10. AntifraAntifraggile/Sile/Sppeedeed DemonsDemons
**REDRED is changes from 1982 list.is changes from 1982 list.

Update 2016.Update 2016.
Much the same.Much the same.
But important changes.But important changes.
(The changes—as well as the(The changes—as well as the
similarities—are imbedded in thesimilarities—are imbedded in the
material in this presentation.)material in this presentation.)

2.22.2 X140X140
Excellence “Twitter-Excellence “Twitter-
ized”ized”

In Search of Excellence “twitter-In Search of Excellence “twitter-
ized”/ized”/ <140 Characters:<140 Characters:
Cherish your people.Cherish your people.
Cuddle yourCuddle your
customers. Wandercustomers. Wander
around. “Try it” beatsaround. “Try it” beats
““talk about it.”talk about it.”
Pursue Excellence.Pursue Excellence.
TellTell
the truth.the truth.

In Search of Excellence.2016In Search of Excellence.2016 ……
TwitterTwitter-ization.-ization.

My Story/My Story/ 40+40+ Years/<140Years/<140
CharactersCharacters
****Take charge of your life!Take charge of your life!
****Aim high!Aim high!
****Be “Of service”!Be “Of service”!
****Engage others!Engage others!
****Follow the Golden Rule!Follow the Golden Rule!
****Act now!Act now!
****Relentless!Relentless!
****No less than EXCELLENCE!No less than EXCELLENCE!

My lifeMy life …… TwitterTwitter-ized.-ized.

((2.32.3 By The WayBy The Way
……))

In Search of ExcellenceIn Search of Excellence Beats theBeats the
MarketMarket
ExIn*: 1982-ExIn*: 1982-
2002/Forbes.com2002/Forbes.com
DJIA: $10,000 yieldsDJIA: $10,000 yields
$85,000
EI: $10,000 yieldsEI: $10,000 yields
$140,050

ISOE Beats the Market:ISOE Beats the Market: I am often askedI am often asked
how the “Excellent companies” have fared. Some,how the “Excellent companies” have fared. Some,
to be sure, were bombs. But, on the 20to be sure, were bombs. But, on the 20 thth
anniversary of the book’s publication, in 2002,anniversary of the book’s publication, in 2002,
Forbes.comForbes.com analyzed the stock marketanalyzed the stock market
performance of the firms.performance of the firms.
The results, FYI, are on the prior slide.The results, FYI, are on the prior slide.
(In addition to the satisfactory performance,(In addition to the satisfactory performance,
ForbesForbes noted that, unlike the real world of stock-noted that, unlike the real world of stock-
picker indices, this analysis precluded selling offpicker indices, this analysis precluded selling off
stocks that were tanking—hence the Excellencestocks that were tanking—hence the Excellence
Index is at a big disadvantage to standard indices;Index is at a big disadvantage to standard indices;
yet it had still done very well.) (For no particularyet it had still done very well.) (For no particular
reason, neither I nor anyone else seems to havereason, neither I nor anyone else seems to have
done a subsequent analysis. Frankly, 20 years is adone a subsequent analysis. Frankly, 20 years is a
pretty good test.)pretty good test.)

2.42.4 X6X6
Just 6 Words*:Just 6 Words*:
But a CoreBut a Core
PhilosophyPhilosophy
(*+7 Ss)(*+7 Ss)

Hard is Soft.Hard is Soft.
Soft is Hard.Soft is Hard.

HardHard (numbers, plans)(numbers, plans) is Soft.is Soft.
SoftSoft (people/relationships/culture)(people/relationships/culture) isis
Hard.Hard.

Action.Action.
People.People.
Customers.Customers.
Values.Values.
Some—most?—call these areas “soft”: Where are theSome—most?—call these areas “soft”: Where are the
numbers Where are the plans?numbers Where are the plans?
Surely thereSurely there isis room for the numbers—room for the numbers— andand the plans.the plans.
But they are the real “soft stuff”—malleable andBut they are the real “soft stuff”—malleable and
manipulable.manipulable.
(As we saw again and again during the 2007+ economic(As we saw again and again during the 2007+ economic
crisis.)crisis.)
The truly “hard stuff”—which can’t be faked orThe truly “hard stuff”—which can’t be faked or
exaggerated—are the relationships with, for instance,exaggerated—are the relationships with, for instance,
our customers and our own people.our customers and our own people.
“‘“‘Hard’ is ‘soft.’Hard’ is ‘soft.’
‘‘Soft’ is ‘hard.’”Soft’ is ‘hard.’”
Mantra #1 fromMantra #1 from In Search of EXCELLENCE.In Search of EXCELLENCE.
Mantra 1982.Mantra 1982.
Mantra 2016.Mantra 2016.

““THE 7-S MODEL”THE 7-S MODEL”
STRATEGYSTRATEGY
STRUCTURESTRUCTURE
SYSTEMSSYSTEMS
STYLESTYLE
SKILLSSKILLS
STAFFSTAFF
SUPER-ORDINATE GOALSUPER-ORDINATE GOAL

““The 7-S Model”The 7-S Model”
“Hard S“Hard Sss ””
(Strategy, Structure, Systems)(Strategy, Structure, Systems)
“Soft S“Soft SSS ””
(Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)

““TheThe 7-S7-S Model”Model”
STRATEGYSTRATEGY
STRUCTURESTRUCTURE
SYSTEMSSYSTEMS
STYLESTYLE (CORPORATE “CULTURE,” “THE WAY(CORPORATE “CULTURE,” “THE WAY
WE DO THINGS AROUND HERE”)WE DO THINGS AROUND HERE”)
SKILLSSKILLS (“DISTINCTIVE COMPETENCE/S”)(“DISTINCTIVE COMPETENCE/S”)
STAFFSTAFF (PEOPLE-TALENT)(PEOPLE-TALENT)
SUPER-ORDINATE GOALSUPER-ORDINATE GOAL (VISION, CORE(VISION, CORE
VALUES)VALUES)

TheThe “McKinsey 7-S Model”“McKinsey 7-S Model” (or simply(or simply
“7-S model”) that Bob Waterman and I developed“7-S model”) that Bob Waterman and I developed
in 1979 (with Tony Athos, Richard Pascale andin 1979 (with Tony Athos, Richard Pascale and
Julien Phillips) has stood the test of time—37Julien Phillips) has stood the test of time—37
years to date. Our current-day McKinseyyears to date. Our current-day McKinsey
colleagues claim it’s still thecolleagues claim it’s still the “most useful“most useful
framework for assessing Organizationalframework for assessing Organizational
EffectivenessEffectiveness ”—it underpins a great deal of”—it underpins a great deal of
McKinsey’s current work.McKinsey’s current work.
The idea, encompassed by the “Hard is soft, SoftThe idea, encompassed by the “Hard is soft, Soft
is Hard” notion, is that there are “soft Ss” asis Hard” notion, is that there are “soft Ss” as
well as “hard Ss” that must be considered andwell as “hard Ss” that must be considered and
managed-as-one to maximize organization well-managed-as-one to maximize organization well-
being and competitive strength. Moreover—andbeing and competitive strength. Moreover—and
here’s the rub—all 7 must in effect be perfectlyhere’s the rub—all 7 must in effect be perfectly
aligned to achieve sustaining Excellence. (Noaligned to achieve sustaining Excellence. (No
mean feat!)mean feat!)

The 7-S model was/is to be laid outThe 7-S model was/is to be laid out
this way. The diagram implicitlythis way. The diagram implicitly
introduces the crucial idea of …introduces the crucial idea of …
“fit.”“fit.”
Each of the “Ss” must beEach of the “Ss” must be
considered in relationship to theconsidered in relationship to the
other six. This balancing/high-other six. This balancing/high-
tension act is at the center of thetension act is at the center of the
leader’s principal role as …leader’s principal role as …
Enterprise ArchitectEnterprise Architect..

““If I could have chosen not to tackle the IBM cultureIf I could have chosen not to tackle the IBM culture
head-on, I probably wouldn’t have. My bias coming inhead-on, I probably wouldn’t have. My bias coming in
was toward strategy, analysis and measurement. Inwas toward strategy, analysis and measurement. In
comparison, changing the attitude and behaviors ofcomparison, changing the attitude and behaviors of
hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.
[YET] I CAME TO SEE IN[YET] I CAME TO SEE IN
MY TIME AT IBM THATMY TIME AT IBM THAT
CULTURE ISN’T JUSTCULTURE ISN’T JUST
ONE ASPECT OF THEONE ASPECT OF THE
GAMEGAME ——IT IS THEIT IS THE
GAMEGAME.”.” —Lou Gerstner,—Lou Gerstner,
Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

Hard to describe the meaning ofHard to describe the meaning of
this to me personally. Gerstnerthis to me personally. Gerstner
said again and again when he an Isaid again and again when he an I
were at McKinsey that I was full ofwere at McKinsey that I was full of
baloney for focusing on the “soft”baloney for focusing on the “soft”
“culture stuff.”“culture stuff.”
Per this slide, from hisPer this slide, from his
autobiography featuring the IBMautobiography featuring the IBM
years, he apparently became ayears, he apparently became a
convertconvert !!

Pillars of Soft-EdgePillars of Soft-Edge
TrustTrust
TeamsTeams
TasteTaste
SmartsSmarts
StoryStory
Source:Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Rich Karlgaard is the publisher ofRich Karlgaard is the publisher of
ForbesForbes magazine—and a Silicon Valleymagazine—and a Silicon Valley
stalwart of the 1stalwart of the 1stst
order. So it isorder. So it is
especially interesting that he wouldespecially interesting that he would
write a book on “the soft stuff.” Butwrite a book on “the soft stuff.” But
The Soft EdgeThe Soft Edge is just that—is just that—
and his arguments are compelling. Theand his arguments are compelling. The
bottom line, in Silicon Valley forbottom line, in Silicon Valley for
example, is that you will not achieveexample, is that you will not achieve
more than a smidgeon of your techmore than a smidgeon of your tech
potential unless the organization whichpotential unless the organization which
carries out your mission emphasizescarries out your mission emphasizes
Rich’s “soft edge” traits. (Which areRich’s “soft edge” traits. (Which are
quite congruent with the “7-S Model”quite congruent with the “7-S Model”
just described.)just described.)
(The idea holds elsewhere as well. But the point(The idea holds elsewhere as well. But the point

““Far too many companies invest too little time andFar too many companies invest too little time and
money in their soft-edge excellence. … The threemoney in their soft-edge excellence. … The three
main reasons for this mistake are:main reasons for this mistake are:
1.1. The hard edge is easier toThe hard edge is easier to
quantify. …quantify. …
2.2. Successful hard-edgeSuccessful hard-edge
investment provides a fasterinvestment provides a faster
return on investment. …return on investment. …
3.3. CEOs, CFO, chief operatingCEOs, CFO, chief operating
officers, boards of directors,officers, boards of directors,
and shareholders speak theand shareholders speak the
language of finance.language of finance. …”
Source:Source: The Soft EdgeThe Soft Edge , Rich Karlgaard, Rich Karlgaard

Soft-Edge AdvantagesSoft-Edge Advantages
1. Soft-edge strength leads to1. Soft-edge strength leads to
greater brand recognition, highergreater brand recognition, higher
profit margins, …profit margins, … [It] is the ticket[It] is the ticket
out of Commodityville.out of Commodityville.
““2.2. Companies strong in the softCompanies strong in the soft
edge are better prepared to surviveedge are better prepared to survive
a big strategic mistake ora big strategic mistake or
cataclysmic disruption …cataclysmic disruption …
““3. Hard-edge strength is3. Hard-edge strength is
absolutely necessary to compete,absolutely necessary to compete,
but it provides only a fleetingbut it provides only a fleeting
advantage.”advantage.”
Source:Source: The Soft EdgeThe Soft Edge, Rich Karlgaard, Rich Karlgaard

Amen.Amen.
(Read the book.(Read the book. PLEASEPLEASE.).)

McKinseMcKinsey: Culture > Strategyy: Culture > Strategy
Wall Street Journal,Wall Street Journal, 0910.13, interview:0910.13, interview:
“What matters most to a“What matters most to a
company over time?company over time?
Strategy or culture?”Strategy or culture?”
Dominic Barton, Managing Director,Dominic Barton, Managing Director,
McKinsey & Co.:McKinsey & Co.: “Culture.”“Culture.”
McKinseMcKinsey: People > Strategyy: People > Strategy
““People Before Strategy”People Before Strategy” ——
title,title,
lead article,lead article, Harvard Business ReviewHarvard Business Review July-AugustJuly-August
2015, by McKinsey MD Dominic Barton et al.2015, by McKinsey MD Dominic Barton et al.

McKinsey fought me tooth and nail inMcKinsey fought me tooth and nail in
the late 1970s. Strategy #1 was thethe late 1970s. Strategy #1 was the
unbending credo.unbending credo.
Times change. The current McKinsey MDTimes change. The current McKinsey MD
is singing a different tune—in fact fromis singing a different tune—in fact from
a different hymnal.a different hymnal.
Interesting.Interesting.
Eh?Eh?

““Mr. Watson, howMr. Watson, how
long does it take tolong does it take to
achieveachieve
excellence?”excellence?”

Thomas Watson, legendary CEO of IBM.Thomas Watson, legendary CEO of IBM.

““OneOne
minute.minute.
…”…”

““One minute.One minute. YouYou
make upmake up yyourour
mind to nevermind to never
aaggain consciouslain consciouslyy
do somethindo somethingg thatthat
isis
less thanless than
excellentexcellent.”.”

EXCELLENCE startsEXCELLENCE starts insideinside you and isyou and is
reflected—or not—in your most minutereflected—or not—in your most minute
and temporal behaviors.and temporal behaviors.

"We all start out in life loving our fathers and mothers"We all start out in life loving our fathers and mothers
above everything else in the world, but that does notabove everything else in the world, but that does not
close the doors of love. That prepares us to love ourclose the doors of love. That prepares us to love our
wives and husbands and children and friends and towives and husbands and children and friends and to
cooperate with and show respectcooperate with and show respect
to all worthy individuals with whom we come into all worthy individuals with whom we come in
contact or have an opportunity to reach in other ways.contact or have an opportunity to reach in other ways.
We must applyWe must apply
that to nations and to other businesses.that to nations and to other businesses.
"We in IBM must not confine our thoughts just to IBM."We in IBM must not confine our thoughts just to IBM.
We must extend our cooperation to all otherWe must extend our cooperation to all other
businesses whether we do business with them or not.businesses whether we do business with them or not.
We are oneWe are one
cog in the industrial wheel.cog in the industrial wheel.
"Then as citizens we must extend our respect to all"Then as citizens we must extend our respect to all
worthy people in all nations. We are moving along inworthy people in all nations. We are moving along in
troublesome times, but the love of these varioustroublesome times, but the love of these various
things of which I have spoken and of the people inthings of which I have spoken and of the people in
whom we are interested iswhom we are interested is
Going to be the great force which will make us allGoing to be the great force which will make us all
appreciateappreciate
the spiritual values which constitute the only solidthe spiritual values which constitute the only solid
foundation on which we can build."foundation on which we can build."
—Thomas J. Watson, Sr. address to IBM Sales and Service

““Everything can beEverything can be
taken from a man buttaken from a man but
one thing:one thing:
the last of the humanthe last of the human
freedoms—to choosefreedoms—to choose
one’s attitude in anyone’s attitude in any
given set ofgiven set of
circumstances, tocircumstances, to
choose one’s own way.”choose one’s own way.”
—Victor Frankl—Victor Frankl

Frankl, one of the world’s greatestFrankl, one of the world’s greatest
psychologists, was a survivor of a Nazipsychologists, was a survivor of a Nazi
concentration camp.concentration camp.

BLD:BLD: Fact is, youFact is, you
CANCAN taketake ANYANY
damned attitudedamned attitude
YOUYOU choosechoose
to workto work TODAYTODAY!!
In fact, it's your …In fact, it's your …
BLD/BLD/ BBiggestiggest LLifeife
DDecision!ecision!

BIGGEST.BIGGEST.
Up to you.Up to you.
Soooo…..Soooo…..

EXCELLENCEEXCELLENCE
is ais a
PERSONALPERSONAL
choice …choice … NOTNOT
anan
institutionalinstitutional

In fact there are few items in thisIn fact there are few items in this
presentation that are more importantpresentation that are more important
than this one.than this one.
Bottom line:Bottom line:
YOUR CHOICE.YOUR CHOICE.
PERIOD.PERIOD.

Joe J. JonesJoe J. Jones
1942 – 20161942 – 2016
HE WOULDA DONE SOMEHE WOULDA DONE SOME
REALLY COOL STUFFREALLY COOL STUFF
BUT …BUT …
HIS BOSS WOULDN’THIS BOSS WOULDN’T
LET HIM!LET HIM!

There are a hundred hundred reasonsThere are a hundred hundred reasons
why this or that desirable/excitingwhy this or that desirable/exciting
thing (SERVICE, EXCELLENCE)thing (SERVICE, EXCELLENCE) “can’t“can’t
be done around herebe done around here ”*—or, at least, not”*—or, at least, not
today.today.
But, in the end, it’sBut, in the end, it’s yyourour
tombstone, not “theirs.”tombstone, not “theirs.”
(*I hear that damn refrain at every seminar(*I hear that damn refrain at every seminar !!))

CAUSE.CAUSE. (worthy of(worthy of
commitment)commitment)
SPACE.SPACE. (room(room
for/encouragementfor/encouragement
for initiative byfor initiative by
ALL)ALL)
DECENCY.DECENCY. (respect,(respect,
grace,grace,
integrity, civility)integrity, civility)

It came out of nowhere … sprang fromIt came out of nowhere … sprang from
my keyboard unbidden. A(nother)my keyboard unbidden. A(nother)
“Theory of Everything” in …“Theory of Everything” in … 33words.*words.*
(*What can I say? I keep looking for clarity & brevity(*What can I say? I keep looking for clarity & brevity
in presenting the main themes of my work sincein presenting the main themes of my work since
1976.)1976.)

CAUSE.CAUSE. (worthy of commitment)(worthy of commitment)
SPACE.SPACE. (room for/encouragement(room for/encouragement
for initiative by ALL)for initiative by ALL)
DECENCY.DECENCY. (respect, grace, integrity,(respect, grace, integrity,
civility)civility)
SERVICE.SERVICE. (worthy of our clients’ &(worthy of our clients’ &
extendedextended
family’s continuingfamily’s continuing
custom)custom)
EXCELLENCE.EXCELLENCE. (PERIOD)(PERIOD)

CAUSE.CAUSE. (worthy of commitment)(worthy of commitment)
SPACE.SPACE. (room for/encouragement(room for/encouragement
for initiative by ALL)for initiative by ALL)
DECENCY.DECENCY. (respect, grace, integrity, civility)(respect, grace, integrity, civility)
SERVICE.SERVICE. (worthy of our clients’ & extended(worthy of our clients’ & extended
family’s continuing custom)family’s continuing custom)
EXCELLENCE.EXCELLENCE. (PERIOD)(PERIOD)
SERVANTSERVANT
LEADERSHIP.LEADERSHIP.

CAUSE.CAUSE.
SPACE.SPACE.
DECENCY.DECENCY.
SERVICE.SERVICE.
EXCELLENCE.EXCELLENCE.
SERVANT LEADERSHIP.SERVANT LEADERSHIP.

I added 2 more ideas/2 more words.I added 2 more ideas/2 more words.
Then 1 more idea/another 2 words.Then 1 more idea/another 2 words.
Hence in the end,Hence in the end,
A … “Theory of Everything” inA … “Theory of Everything” in 77words.words.

7 Steps to Sustaining Success7 Steps to Sustaining Success
You take care of the people.You take care of the people.
The people take care of the service.The people take care of the service.
The service takes care of the customer.The service takes care of the customer.
The customer takes care of the profit.The customer takes care of the profit.
The profit takes care of the re-investment.The profit takes care of the re-investment.
The re-investment takes care of the re-invention.The re-investment takes care of the re-invention.
The re-invention takes care of the future.The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

And it all starts with …And it all starts with … THETHE
PEOPLEPEOPLE..
(a principal theme of this entire book.)(a principal theme of this entire book.)

2.82.8 A SacredA Sacred
TrustTrust

““LEADERSLEADERS
‘‘DODO’’
PEOPLE.PEOPLE.
PERIOD.”PERIOD.” —Anon.—Anon.

LEADERSHIPLEADERSHIP
IS AIS A
SACREDSACRED
TRUST.TRUST.**
*President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

""Leadership is aLeadership is a
gift. It's givengift. It's given
by those whoby those who
follow. Youfollow. You
have to behave to be
worthy of it.”worthy of it.”
——General Mark Welsh, Commander, U.S. Air ForcesGeneral Mark Welsh, Commander, U.S. Air Forces
EuropeEurope

2.92.9
Engineering.Engineering.
NOT.NOT.

Response to question on hisResponse to question on his
(Peter Drucker’s) “most important(Peter Drucker’s) “most important
contribution”:contribution”: “I focused this“I focused this
discipline on people and power; ondiscipline on people and power; on
values, structure, andvalues, structure, and
constitution; and above all, onconstitution; and above all, on
responsibilities—responsibilities— THAT IS,THAT IS,
I FOCUSED THEI FOCUSED THE
DISCIPLINE OFDISCIPLINE OF
MANAGEMENT ONMANAGEMENT ON
MANAGEMENT AS AMANAGEMENT AS A
TRULY LIBERAL ARTTRULY LIBERAL ART.”.”
(18 January 1999)(18 January 1999)

Hard is Soft. Soft is hard.Hard is Soft. Soft is hard.
Management as a …Management as a …
LIBERALLIBERAL
ARTART.. * *** **
(*P-l-e-a-s-e convey that to the business(*P-l-e-a-s-e convey that to the business
schools—fat chance getting an iota ofschools—fat chance getting an iota of
reaction.)reaction.)
(**The consequences of this are enormous.(**The consequences of this are enormous.
The impact on people practices, for oneThe impact on people practices, for one
giant thing, are mind boggling—starting,giant thing, are mind boggling—starting,

““Winning business wasWinning business was
more important thanmore important than
making great products.making great products.
Microsoft neverMicrosoft never
had thehad the
humanities orhumanities or
liberal arts in itsliberal arts in its
DNADNA..”” —Steve Jobs on Bill Gates and—Steve Jobs on Bill Gates and

Characteristic Jobs smartassery—butCharacteristic Jobs smartassery—but
not without a dram of truth.not without a dram of truth.

““That 'Useless'That 'Useless'
Liberal ArtsLiberal Arts
Degree HasDegree Has
Become Tech'sBecome Tech's
Hottest Ticket.”Hottest Ticket.”
Source: title,Source: title, ForbesForbes cover story (17 August 2015cover story (17 August 2015)

EXCELLENCE isEXCELLENCE is
NOTNOT
NOTNOT
NOTNOT a “long-a “long-
term” "aspiration.”term” "aspiration.”

EXCELLENCE isEXCELLENCE is notnot a “long-a “long-
term” "aspiration.”term” "aspiration.”
EXCELLENCEEXCELLENCE isis the ultimatethe ultimate
short-term strategy.short-term strategy.
EXCELLENCEEXCELLENCE isis … THE… THE
NEXTNEXT 55 MINUTESMINUTES..**
(*Or(*Or NOTNOT.).)

EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.
EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.
Or not.
EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.
Or not.
EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.
Or not.
EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.
Or not.
EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”
Or not.
EXCELLENCE is the next time you shoulder responsibility andEXCELLENCE is the next time you shoulder responsibility and
apologize.apologize.
Or not.
EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.
Or not.
EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.
Or not.
EXCELLENCE is lending a hand to an “outsider” who’s fallen behindEXCELLENCE is lending a hand to an “outsider” who’s fallen behind
schedule.schedule.
Or not.
EXCELLENCE is bothering to learn the way folks in finance (or IS orEXCELLENCE is bothering to learn the way folks in finance (or IS or
HR) think.HR) think.
Or not.
EXCELLENCE is waaay “over”-preparing for a 3-minuteEXCELLENCE is waaay “over”-preparing for a 3-minute
presentation.presentation.
Or not.
EXCELLENCE is turning “insignificant” tasks into models of …EXCELLENCE is turning “insignificant” tasks into models of …

Translation: Reflect on your last fiveTranslation: Reflect on your last five
minutes—and next five minutes.minutes—and next five minutes.
Did they/will they measure up to theDid they/will they measure up to the
“Excellence Standard”?“Excellence Standard”?
(That’s all there is, there ain’t no more.)(That’s all there is, there ain’t no more.)
Next five minutes.Next five minutes.
OR NOT.OR NOT.

““I shall tell you aI shall tell you a
great secret, mygreat secret, my
friend. Do notfriend. Do not
wait for the lastwait for the last
judgment;judgment; itit
takestakes pplace everlace everyy
daday.”y.”

Truer words …Truer words …

2.112.11 Excellence:Excellence:
The ThingThe Thing
About Joe …About Joe …

““In a way, the world is a great liar.In a way, the world is a great liar.
It shows you it worships and admiresIt shows you it worships and admires
money, but at the end of the day itmoney, but at the end of the day it
doesn’t. It says it adores fame anddoesn’t. It says it adores fame and
celebrity, but it doesn’t, not really.celebrity, but it doesn’t, not really.
The world admires, and wants to holdThe world admires, and wants to hold
on to, and not lose, goodness. Iton to, and not lose, goodness. It
admires virtue. At the end it gives itsadmires virtue. At the end it gives its
greatest tributes to generosity,greatest tributes to generosity,
honesty, courage, mercy, talents wellhonesty, courage, mercy, talents well
used, talents that, brought into theused, talents that, brought into the
world, make it better. That’s what itworld, make it better. That’s what it
really admires. That’s what we talkreally admires. That’s what we talk
about in eulogies, because that’sabout in eulogies, because that’s
what’s important. We don’t say, ‘Thewhat’s important. We don’t say, ‘The
thing about Joe was he was rich!’ Wething about Joe was he was rich!’ We
say, if we can …say, if we can …

“ …“ … We say, if we can …We say, if we can …
‘‘The thingThe thing
about Joe wasabout Joe was
he tookhe took ggoodood
care ofcare of
ppeoeopplele.’”.’”
——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing ofPeggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of

Joe J. JonesJoe J. Jones
1942 – 20151942 – 2015
Net WorthNet Worth
$21,543,672.48$21,543,672.48

$$$$$$:$$$$$$: NotNot the stuff ofthe stuff of
tombstones.tombstones.
Eh?Eh?

2.122.12
EXCELLENCE:EXCELLENCE:
BeyondBeyond
SuccessSuccess ……

““[This year’s] graduates are told [by[This year’s] graduates are told [by
commencement speakers] to pursuecommencement speakers] to pursue
happiness and joy. But, of course, whenhappiness and joy. But, of course, when
you read a biography of someone youyou read a biography of someone you
admire, it’s rarely the things that madeadmire, it’s rarely the things that made
them happy that compel our admiration.them happy that compel our admiration.
It’s the things they did to courtIt’s the things they did to court
unhappiness—the things they did thatunhappiness—the things they did that
were arduous and miserable, whichwere arduous and miserable, which
sometimes cost them friends andsometimes cost them friends and
aroused hatredaroused hatred .. IT’SIT’S
EXCELLENCE, NOTEXCELLENCE, NOT
HAHAPPPPINESS, THAT WEINESS, THAT WE
ADMIRE MOSTADMIRE MOST.”.” —David Brooks,—David Brooks,
“It’s Not About You,” op-ed,“It’s Not About You,” op-ed, New York TimesNew York Times, 30 May 2011, 30 May 2011

““Strive forStrive for
Excellence.Excellence.
IgnoreIgnore
success.”success.”
—Bill Young, race car driver

Not only do I agree with this sentimentNot only do I agree with this sentiment
—but I think it is profound. In higher—but I think it is profound. In higher
mathematics the accuracy of a newmathematics the accuracy of a new
proof is not enough. The proof must beproof is not enough. The proof must be
parsimonious, beautiful in its ownparsimonious, beautiful in its own
fashion.fashion.
In the same way, “ugly success” mayIn the same way, “ugly success” may
have its virtues, but also its vices.have its virtues, but also its vices.
E.g., the winning sports team thatE.g., the winning sports team that
exhibits arrogance rather than graceexhibits arrogance rather than grace
toward one’s defeated opponents.toward one’s defeated opponents.
EXCELLENCE—to me—has its ownEXCELLENCE—to me—has its own
rewards per se and is the mightiest ofrewards per se and is the mightiest of
aspirations—particularly as one looksaspirations—particularly as one looks
back in the hindsight of a decade orback in the hindsight of a decade or
two.two.

2.132.13 Excellence:Excellence:
Five Or LessFive Or Less
Words To TheWords To The
WiseWise

EXCELLENCE/Five Or Less Words To The WiseEXCELLENCE/Five Or Less Words To The Wise
4 most important words:4 most important words: “What do you think?”“What do you think?” (Dave(Dave
Wheeler @Wheeler @
tompeters.com: “Mosttompeters.com: “Most
important 4important 4
words in an organization.”)words in an organization.”)
4 most important words:4 most important words: “How can I help?”“How can I help?” (Boss as(Boss as
CHRO/CHRO/
Chief Hurdle Removal Officer)Chief Hurdle Removal Officer)
2 most important words:2 most important words: “Thank you!”“Thank you!” (Appreciation/(Appreciation/
Recognition)Recognition)
2 most important words:2 most important words: “All yours.”“All yours.” (“Hands-off”(“Hands-off”
delegation/delegation/
Respect/Trust)Respect/Trust)
3 most important words:3 most important words: “I’m going out.”“I’m going out.” (MBWA/Managing(MBWA/Managing
ByBy
Wandering Around/In touch!)Wandering Around/In touch!)
2 most important words:2 most important words: “I’m sorry.”“I’m sorry.” (Power of(Power of
unconditionalunconditional
apology = Stunning! Marshallapology = Stunning! Marshall
Goldsmith: #1 exec issue)Goldsmith: #1 exec issue)
5 most important words:5 most important words: “Did you tell the customer?”“Did you tell the customer?”
(Over-(Over-
communicate)communicate)
2 most important words:2 most important words: “She says …”“She says …” (“She” is the(“She” is the
customer!)customer!)

2 most important words:2 most important words: “Try it!”“Try it!” (My only “for sure” in 49(My only “for sure” in 49
years:years:
Herb Kelleher:Herb Kelleher: “We have a“We have a
strategicstrategic
plan, it’s called doingplan, it’s called doing
things.”/things.”/BillBill
Parcells:Parcells: “Blame no one.“Blame no one.
ExpectExpect
nothing. Do something.”nothing. Do something.” ))
3 most important words:3 most important words: “Try it again!”“Try it again!” (My only “for sure”(My only “for sure”
4444
years: MOST TRIES WINS.)years: MOST TRIES WINS.)
2 most important words:2 most important words: “Good try!”“Good try!” (CELEBRATE “good(CELEBRATE “good
failures.” Richard Farson/book:failures.” Richard Farson/book:
Whoever Makes the MostWhoever Makes the Most
MistakesMistakes
Wins.Wins. Samuel Beckett:Samuel Beckett: “Fail.“Fail.
Fail again.Fail again.
Fail better.”Fail better.”))
3 most important words:3 most important words: “At your service.”“At your service.” (Organizations(Organizations
existexist
to serve. Period. Leaders liveto serve. Period. Leaders live
to serve.to serve.
Period.)Period.)
4 most important words:4 most important words: “How are we doing?”“How are we doing?” (To(To
customers,customers,
regularly.)regularly.)
4 most important words:4 most important words: “How was Mary’s recital?”“How was Mary’s recital?” (Know(Know

1 most important word:1 most important word: “Yes.”“Yes.” (Hey, give it a shot/Anon.(Hey, give it a shot/Anon.
quote:quote:
““The best answer is always,The best answer is always,
‘What the‘What the
hell.’”/hell.’”/Wayne Gretzky:Wayne Gretzky: “You miss“You miss
100% of the shots you don’t100% of the shots you don’t
take.”take.”))
2 most important words:2 most important words: “Lunch today?”“Lunch today?” (“Social stuff” =(“Social stuff” =
SecretSecret
to problem/opportunityto problem/opportunity
#1:/XFX/#1:/XFX/
cross-functional Excellence.)cross-functional Excellence.)
4 most important words:4 most important words: “Thank Dick in accounting.”“Thank Dick in accounting.”
(Readily(Readily
acknowledge help from otheracknowledge help from other
functions.)functions.)
2 most important words:2 most important words: “After you.”“After you.” (Courtesy rules.)(Courtesy rules.)
3 most important words:3 most important words: “Thanks for coming.”“Thanks for coming.” (Civility.(Civility.
E.g., bossE.g., boss
acknowledges employeeacknowledges employee
coming tocoming to
her/his office.)her/his office.)
2 most important words:2 most important words: “Great smile!”“Great smile!” (Note &(Note &
acknowledgeacknowledge
good attitude.)good attitude.)
1 most important word:1 most important word: “Wow!”“Wow!” (The gold standard … for(The gold standard … for
everything.)everything.)
1 most important word:1 most important word: “EXCELLENT!”“EXCELLENT!” (The … ONLY …(The … ONLY …

2.142.14
Excellence:Excellence:
TheThe
19Es19Es

If Not Excellence, What?If Not Excellence, What?
If Not Excellence Now, When?If Not Excellence Now, When?
The “19 Es” of ExcellenceThe “19 Es” of Excellence
EnthusiasmEnthusiasm .. (Be an irresistible force of nature!)(Be an irresistible force of nature!)
EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)
ExuberanceExuberance .. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)
ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is(Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is
gospel!gospel!
Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)
EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?”
Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)
EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)
EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)
EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.)(Addicted to MBWA/Managing By Wandering Around. In touch. Always.)
ElectronicElectronic .. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building
and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)
EncomEncom ppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se
“works”!)“works”!)
EmotionEmotion .. (The alpha. The omega. The essence of leadership. The essence of sales.(The alpha. The omega. The essence of leadership. The essence of sales.
The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)
EmEmppathath y.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk
in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)
ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard:
““ Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)
EliminateEliminate .. (Keep it simple!)(Keep it simple!)
ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more
stuffstuff
and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)
EvenhandedEvenhanded .. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)
ExpectationsExpectations .. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we(Michelangelo: “The greatest danger for most of us is not that our aim is too high and we
miss it,miss it,
but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)
EudaimoniaEudaimonia .. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of(Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of
service. Always.)service. Always.)
ExcellenceExcellence .. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what?
If not Excellence now, when?)If not Excellence now, when?)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE
EnthusiasmEnthusiasm!! (Be an irresistible force of nature!(Be an irresistible force of nature! Be fire! Light fires!)Be fire! Light fires!)
ExuberanceExuberance!! ((Vibrate—cause earthquakes!)Vibrate—cause earthquakes!)
ExecutionExecution!! (Do it! Now! Get it done! Barriers are baloney! Excuses are(Do it! Now! Get it done! Barriers are baloney! Excuses are
for wimps! Accountability is gospel! Adhere to coach Bill Parcells’for wimps! Accountability is gospel! Adhere to coach Bill Parcells’
doctrine:doctrine: “Blame nobody!! Expect nothing!! Do something!!”“Blame nobody!! Expect nothing!! Do something!!”))
EmEmppowermentowerment!! (Respect! Appreciation! Ask until you’re blue in the face,(Respect! Appreciation! Ask until you’re blue in the face,
““What do you think?”What do you think?” Then: Listen! Liberate! 100.00% innovators!)Then: Listen! Liberate! 100.00% innovators!)
EdEdgginessiness!! (Perpetually dance at the frontier and a little, or a lot, beyond.)(Perpetually dance at the frontier and a little, or a lot, beyond.)
EnraEnraggeded!! (Maintain a permanent state of mortal combat with the(Maintain a permanent state of mortal combat with the
status-quo!)status-quo!)
EnEnggaaggeded!! (Addicted to(Addicted to MBWAMBWA/Managing By Wandering Around./Managing By Wandering Around. In touch.In touch.
Always.Always.))
ElectronicElectronic!! (Partner with the whole wide world 60/60/24/7 via all manner(Partner with the whole wide world 60/60/24/7 via all manner
of electronic community building and entanglement.of electronic community building and entanglement. CrowdsourcingCrowdsourcing
wins!)wins!)
EncomEncomppassingassing!! (Relentlessly pursue diversity of every flavor! Diversity(Relentlessly pursue diversity of every flavor! Diversity
per se generates big returns!) (Seeking superb leaders:per se generates big returns!) (Seeking superb leaders: Women rule!Women rule!))
EmotionEmotion!! (The alpha! The omega! The essence of(The alpha! The omega! The essence of leadershipleadership! The! The
essence ofessence of salessales! The essence of! The essence of designdesign! The essence of life itself!! The essence of life itself!
Acknowledge it! Use it!)Acknowledge it! Use it!)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE
EmEmppathathy!y! ((Connect!Connect! Connect!Connect! Connect! Click with others’ reality andConnect! Click with others’ reality and
aspirations!aspirations! “Walk in the other person’s shoes”—until the soles“Walk in the other person’s shoes”—until the soles
have holes!)have holes!)
EarsEars!! (Effective listening in every encounter:(Effective listening in every encounter: Strategic Advantage No. 1!Strategic Advantage No. 1!
Believe it!)Believe it!)
ExExpperienceerience!! (Life is theater!(Life is theater! It’s always showtime!It’s always showtime! Make every contactMake every contact
aa “Wow”“Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically! Standard: “Insanely Great”/Steve Jobs; “Radically
Thrilling”/BMW.)Thrilling”/BMW.)
EliminateEliminate!! (Keep it simple!! Furiously battle hyper-complexity and(Keep it simple!! Furiously battle hyper-complexity and
gobbledygook!!)gobbledygook!!)
ErrorErrorppronerone!! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos.(Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos.
CELEBRATE the booboos! Try more stuff, make more booboos! HeCELEBRATE the booboos! Try more stuff, make more booboos! He
who makes the most mistakes wins!who makes the most mistakes wins! Fail! Forward! Fast!)Fail! Forward! Fast!)
EvenhandedEvenhanded!! (Straight as an arrow!(Straight as an arrow! Fair to a fault!Fair to a fault! Honest as Abe!)Honest as Abe!)
ExExppectationsectations!! (Michelangelo: “(Michelangelo: “The greatest danger for most of us is notThe greatest danger for most of us is not
that our aim is too high and we miss it, but that it is too low and wethat our aim is too high and we miss it, but that it is too low and we
hit it.”)hit it.”)
EudaimoniaEudaimonia!! (The essence of Aristotelian philosophy: True happiness is(The essence of Aristotelian philosophy: True happiness is
pursuit of the highest of human moral purpose.pursuit of the highest of human moral purpose. Be of service!Be of service!
Always!)Always!)
EXCELLENCEEXCELLENCE!! (The only standard! Never an exception!(The only standard! Never an exception! Start NOW!Start NOW!
No excuses!)No excuses!)

2.15.12.15.1 WhyWhy
Not I?Not I?

ExcellenceExcellence ..
Always.Always.
If notIf not Excellence,Excellence,
what?what?
If notIf not ExcellenceExcellence
now, when?now, when?

This is my mantra.This is my mantra.
This is my life.This is my life.
(Fact is, though we rarely “make it,” I find an(Fact is, though we rarely “make it,” I find an
aspiration of less than excellence beyond myaspiration of less than excellence beyond my
comprehension.)comprehension.)

The failure toThe failure to
pursuepursue
EXCELLENCEEXCELLENCE isis
incomprehensibleincomprehensible
to me.to me.

We may not “get there”—toWe may not “get there”—to
EXCELLENCE—but what is the point ofEXCELLENCE—but what is the point of
most anything if one does not aspire tomost anything if one does not aspire to
doing “it,” humble or grand, withdoing “it,” humble or grand, with
passion and in pursuit of an admirablepassion and in pursuit of an admirable
outcomeoutcome ??

““If a man is called to be aIf a man is called to be a
street sweeper, he shouldstreet sweeper, he should
sweep streets even assweep streets even as
Michelangelo painted, orMichelangelo painted, or
Beethoven composed music, orBeethoven composed music, or
Shakespeare wrote poetry. HeShakespeare wrote poetry. He
should sweep streets so wellshould sweep streets so well
that all the hosts of heaven andthat all the hosts of heaven and
earth will pause to say, hereearth will pause to say, here
livedlived
a great street sweeper who dida great street sweeper who did
his job well.”his job well.” —Dr. Martin Luther King, Jr.—Dr. Martin Luther King, Jr.

To my point …To my point …
Some might say this means one should notSome might say this means one should not
aspire to be “more” than a streetsweeper. Dr.aspire to be “more” than a streetsweeper. Dr.
King would doubtless agree at one level. ButKing would doubtless agree at one level. But
there is a larger and more universal point—thethere is a larger and more universal point—the
aspiration to achieve EXCELLENCE, the way inaspiration to achieve EXCELLENCE, the way in
which the given task is performed, not thewhich the given task is performed, not the
prestige of the task. Beyond this, though, isprestige of the task. Beyond this, though, is
the fact that in 9 of 10 instances an exhibitionthe fact that in 9 of 10 instances an exhibition
of EXCELLENCE per se at anything is one’sof EXCELLENCE per se at anything is one’s
foremost calling card when it comes to movingforemost calling card when it comes to moving
in whatever direction one wishes.in whatever direction one wishes.
(I once heard General Colin Powell say the greatest(I once heard General Colin Powell say the greatest
of success principles—okay, he said “success”—isof success principles—okay, he said “success”—is
to do today’s job with all one’s might and not wasteto do today’s job with all one’s might and not waste
energy or time angling for the next job.energy or time angling for the next job.
Excellence/success today is the ultimateExcellence/success today is the ultimate
“USP”/Unique Selling Proposition.)“USP”/Unique Selling Proposition.)

2.15.22.15.2
Now.Now.
Always.Always.

EXCELLENCE. Now. EXCELLENCE. Always.EXCELLENCE. Now. EXCELLENCE. Always.
1.1. People first, second, third, fourth … /ThePeople first, second, third, fourth … /The
“business” of leaders is people: to“business” of leaders is people: to
inspire/engage/provide a trajectory ofinspire/engage/provide a trajectory of
opportunity—enterprise of every size and typeopportunity—enterprise of every size and type
as “cathedral” for human development.as “cathedral” for human development. "When"When
I hire someone, that's when I go to work forI hire someone, that's when I go to work for
them.”them.” —John DiJulius—John DiJulius
1A. Customer comes 2nd/ If you want to best1A. Customer comes 2nd/ If you want to best
“Wow!” customers then you must first Wow!“Wow!” customers then you must first Wow!
those who serve the customersthose who serve the customers ./"If you want./"If you want
staff to give great service, give great servicestaff to give great service, give great service
to staff.”to staff.”—Ari Weinzweig, Zingerman's/—Ari Weinzweig, Zingerman's/ “You“You
have to treat your employees like customers.”have to treat your employees like customers.”
—Herb Kelleher, on his #1 “secret to success.”—Herb Kelleher, on his #1 “secret to success.”
1B. Manager’s sole raison d’etre:1B. Manager’s sole raison d’etre: Make each ofMake each of
my teammy team
members successful!members successful!
1C. Effective organizations:1C. Effective organizations: No bit players!No bit players!

rememberedremembered
for years!for years!
1E.1E. 1st line supervisors. Every organization’s …1st line supervisors. Every organization’s …
mostmost
important … leadership cadre.important … leadership cadre. Productivity isProductivity is
largelylargely
determined by the caliber of the 1st line boss.determined by the caliber of the 1st line boss.
Selection and development of your “sergeants”Selection and development of your “sergeants”
mustmust
become an “obsession”—almost all do a half-become an “obsession”—almost all do a half-
assedassed
job.job.
1F. Weird/1F. Weird/ There are no “normals” in the historyThere are no “normals” in the history
books!/books!/Insure a healthy supply ofInsure a healthy supply of
oddballs/Diversity ofoddballs/Diversity of
every flavor = Fresh perspectives! Betterevery flavor = Fresh perspectives! Better
decisions!decisions!
1G. Memories That Matter. And don’t./ “People1G. Memories That Matter. And don’t./ “People
stuff”stuff”
sticks with you: You’ll look back on thesticks with you: You’ll look back on the
handful ofhandful of
people you developed who proceeded topeople you developed who proceeded to
change the

2. You/me: Businesses no longer coddle. You’re in2. You/me: Businesses no longer coddle. You’re in
charge!/ “Brand you” —stand out for somethingcharge!/ “Brand you” —stand out for something
valuable, or else; learn something new everyvaluable, or else; learn something new every
day, orday, or
else!/“Distinct or Extinct!”else!/“Distinct or Extinct!”
3.3. Organizations Exist to ServeOrganizations Exist to Serve .. PERIOD.PERIOD.
4. EXECUTION/4. EXECUTION/ “Don’t forget to tuck the shower“Don’t forget to tuck the shower
curtaincurtain
into the bath tub.”into the bath tub.” —Conrad Hilton on—Conrad Hilton on
his “sweat the details” obsession and #1his “sweat the details” obsession and #1
“success“success
secret”/secret”/ “Execution“Execution isis strategy.”strategy.”
——Fred Malek/ “Execution is the leader’s jobFred Malek/ “Execution is the leader’s job
#1.”—Larry#1.”—Larry
BossidyBossidy
4A. “They do … ONE BIG THING at a time.” —4A. “They do … ONE BIG THING at a time.” —
Drucker onDrucker on
successful managers’ #1 trait.successful managers’ #1 trait.
4B. Resilience circa 2011: Understand it. Hire for4B. Resilience circa 2011: Understand it. Hire for
it.it.
Promote for it. Obsess on it.Promote for it. Obsess on it.

Starbucks’Starbucks’
Schultz visits 25 stores a week/ “In touch” isSchultz visits 25 stores a week/ “In touch” is
“not“not
optional”/optional”/You = Your calendar/Calendars neverYou = Your calendar/Calendars never
lie!lie!
5A. Listening per se = Candidate for Core Value5A. Listening per se = Candidate for Core Value
#1/#1/
Listening per se is a professionListening per se is a profession ./“If you don’t./“If you don’t
listen,listen,
you don’t sell anything.”/Docs interruptyou don’t sell anything.”/Docs interrupt
patients afterpatients after
…… 18 seconds. And you?18 seconds. And you?
5B.5B. “What do you think?” “How can I help?”“What do you think?” “How can I help?” ——
MBWAMBWA
8/Eight words, repeated like a mantra while8/Eight words, repeated like a mantra while
““ wandering around,” that unlock engagement/wandering around,” that unlock engagement/
success for multitudes.success for multitudes.
5C. Innovate by “Hanging out” /“You are what you5C. Innovate by “Hanging out” /“You are what you
eat.”/eat.”/ “You will become like the five people“You will become like the five people
youyou
associate with the most —a blessing or aassociate with the most —a blessing or a
curse.”/curse.”/
Want “cool”? Expose yourself to cool! /ManageWant “cool”? Expose yourself to cool! /Manage

EXCELLENCE. Now. EXCELLENCE.EXCELLENCE. Now. EXCELLENCE.
Always.Always.
5D. K = R = P5D. K = R = P (Kindness = Repeat business =(Kindness = Repeat business =
Profit.)Profit.)
““ Hard is soft. Soft is hard.” —#1 findingHard is soft. Soft is hard.” —#1 finding InIn
Search ofSearch of
ExcellenceExcellence. Kindness is “hard”—and pay off. Kindness is “hard”—and pay off
in $$$$.in $$$$.
5E. Apology Power—Awesome power: 3-minute5E. Apology Power—Awesome power: 3-minute
“I’m“I’m
sorry” call heals anything—do itsorry” call heals anything—do it
religiously!/”Over-religiously!/”Over-
the-top” response to even small booboothe-top” response to even small booboo
strengthensstrengthens
customer relationships!customer relationships!

Always.Always.
6.6. ““Little BIG Things”/Focus on “multipliers”:Little BIG Things”/Focus on “multipliers”:
WalmartWalmart
goes to big shopping cart = +50% “big stuff”goes to big shopping cart = +50% “big stuff”
sales boost!/“Wash your Hands” —savesales boost!/“Wash your Hands” —save
thousands of lives P.A. in hospitals!thousands of lives P.A. in hospitals!
6A. “Little BIG Things”: SMEs bedrock of all6A. “Little BIG Things”: SMEs bedrock of all
economies. Nurture them. SME’s battle cryeconomies. Nurture them. SME’s battle cry
per George Whalin:per George Whalin: “Be the best. It’s the only“Be the best. It’s the only
market that’s not crowded.”market that’s not crowded.”
7. Apple > Exxon in market cap courtesy …7. Apple > Exxon in market cap courtesy …
DESIGN!DESIGN! /The big “Duh”: “Cool beats un-/The big “Duh”: “Cool beats un-
cool!”/Design candidate for “best way tocool!”/Design candidate for “best way to
differentiate goods-services in competitivedifferentiate goods-services in competitive
markets.”markets.”
7A.7A. TGRs/Things Gone Right.TGRs/Things Gone Right. Wagon WheelWagon Wheel
restaurant, Gill MA—clean restroom with freshrestaurant, Gill MA—clean restroom with fresh
flowers.—we remember such touches more orflowers.—we remember such touches more or
less forever/less forever/
Manage-measure TGRs.Manage-measure TGRs.
7B. Scintillating Experiences. Howard Schultz on7B. Scintillating Experiences. Howard Schultz on
Starbucks: “At our core, we’re a coffeeStarbucks: “At our core, we’re a coffee
company, but the opportunity we have to

WarrenWarren
Buffett Invests Like a Girl”—e.g., studies harder-Buffett Invests Like a Girl”—e.g., studies harder-
holdsholds
longer-less frenzied buying and selling/Women’slonger-less frenzied buying and selling/Women’s
leadership style fits 21st century less-leadership style fits 21st century less-
hierarchicalhierarchical
enterprise./Evidence clear— Women well on theenterprise./Evidence clear— Women well on the
way toway to
21st century economic domination! Brazil’s21st century economic domination! Brazil’s
PresidentPresident
Dilma Rousseff at UN:Dilma Rousseff at UN: “the century of women.”“the century of women.”
9. Web-Social Media/ “Everyone becomes our valued9. Web-Social Media/ “Everyone becomes our valued
partner, a member of our community—andpartner, a member of our community—and
watchdog”/watchdog”/The Power of Co-creationThe Power of Co-creation —my “Top—my “Top
BizBiz
Book for 2010”/SM can be lynchpin ofBook for 2010”/SM can be lynchpin of
transformativetransformative
strategy—for organizations of every shape andstrategy—for organizations of every shape and
size!size!
10. Value added via transformation from10. Value added via transformation from “Customer“Customer
satisfaction” to “ customer success”satisfaction” to “ customer success” —huge—huge
difference-difference-
opportunity! /E.g., IBM Global Services, fromopportunity! /E.g., IBM Global Services, from

11. Innovation “secret” #1:11. Innovation “secret” #1: “Most tries wins.”“Most tries wins.” / “A/ “A
Bias forBias for
Action”—excellence trait #1,Action”—excellence trait #1, In Search ofIn Search of
/“Ready. Fire! Aim.” —Ross Perot//“Instead of/“Ready. Fire! Aim.” —Ross Perot//“Instead of
trying totrying to
figure out the best way to do something andfigure out the best way to do something and
stickingsticking
to it, just try out an approach and keep fixingto it, just try out an approach and keep fixing
it.”it.”
——Bert RutanBert Rutan
11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/
“Fail“Fail
faster, succeed sooner”—Davidfaster, succeed sooner”—David
Kelley /“RewardKelley /“Reward
excellent failures, punish mediocreexcellent failures, punish mediocre
successes”/successes”/
Whoever Makes the Most Mistakes WinsWhoever Makes the Most Mistakes Wins ——
RichardRichard
FarsonFarson
11B.11B. “You miss 100% of the shots you never“You miss 100% of the shots you never
take.”take.”
——Wayne GretzkyWayne Gretzky

12.12. Live WOW!Live WOW!//Zappos creed … “WOW Customers”/Zappos creed … “WOW Customers”/
eBay 14,000 employees, Amazon 20,000eBay 14,000 employees, Amazon 20,000
employees, Craig’s List 30 employees;employees, Craig’s List 30 employees;
regardless ofregardless of
issue, Where’s your “Wild and Wooly Craig’sissue, Where’s your “Wild and Wooly Craig’s
List Option”?/ Final point in superstar admanList Option”?/ Final point in superstar adman
KevinKevin
Roberts’ Credo:Roberts’ Credo: “Avoid moderation!”“Avoid moderation!”
13.13. EXCELLENCE is a personal choice … not anEXCELLENCE is a personal choice … not an
institutional choice!institutional choice!
EXCELLENCE is not an “aspiration” —it’s theEXCELLENCE is not an “aspiration” —it’s the
next five minutes!next five minutes!
13A. EXCELLENCE. Always. If not EXCELLENCE,13A. EXCELLENCE. Always. If not EXCELLENCE,
What?What?
If not EXCELLENCE Now, When?If not EXCELLENCE Now, When?

2.162.16 WhyWhy
Not II?Not II?

““Why in theWhy in the
World did youWorld did you
go togo to
SiberiaSiberia?”?”

A half-dozen years ago I went toA half-dozen years ago I went to
Novosibirsk, Siberia, to give a seminar.Novosibirsk, Siberia, to give a seminar.
(Novosibirsk, center of Soviet(Novosibirsk, center of Soviet
scientific excellence, was nowscientific excellence, was now
confronting the global economy—andconfronting the global economy—and
looking for a new direction.)looking for a new direction.)
The unusual setting caused me to goThe unusual setting caused me to go
back to “first principals” in myback to “first principals” in my
thinking about enterprise.thinking about enterprise.
I asked myself, for starters …I asked myself, for starters …
“WHAT’S THE POINT?”“WHAT’S THE POINT?”

ENTERPRISEENTERPRISE * (*AT ITS BEST):* (*AT ITS BEST): AnAn emotionalemotional,,
vitalvital,, innovativeinnovative, j, jooyyfulful,, creativecreative,,
entreentreppreneurialreneurial endeavor thatendeavor that
elicits maximumelicits maximum
concerted humanconcerted human
potential in thepotential in the
wholeheartedwholehearted ppursuitursuit
of EXCELLENCE inof EXCELLENCE in
serviceservice of othersof others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

ENTERPRISEENTERPRISE ** (*AT ITS BEST)(*AT ITS BEST) :: AnAn
emotionalemotional,, vitalvital,,
innovativeinnovative, j, jooyyfulful,,
creativecreative,,
entreentreppreneurialreneurial
endeavor that elicitsendeavor that elicits
maximummaximum
concerted humanconcerted human
potential in thepotential in the
wholeheartedwholehearted ppursuitursuit

Enterprise, as I note …Enterprise, as I note … AT ITS BESTAT ITS BEST ..
(Obviously not always achieved—or, alas, even aspired(Obviously not always achieved—or, alas, even aspired
to.)to.)
On the other hand …On the other hand …
if this or something very muchif this or something very much
like it islike it is notnot the aim, then …the aim, then …
whatwhat isis the point?the point?
(In Palo Alto.)(In Palo Alto.)
(In Brooklyn.)(In Brooklyn.)
(In Des Moines.)(In Des Moines.)
(In Novosibirsk.)(In Novosibirsk.)
Think about it.Think about it.
Please.Please.
(Also: Consider the(Also: Consider the oppositeopposite of each word here—is, say,of each word here—is, say,
“joyless” acceptable?)“joyless” acceptable?)
(Photo is me and my interpreter, who turned out to have an economics(Photo is me and my interpreter, who turned out to have an economics
PhD from the University of Maryland; on stage in Novosibirsk.)PhD from the University of Maryland; on stage in Novosibirsk.)

““It may sound radical, unconventional,It may sound radical, unconventional,
and bordering on being a crazy businessand bordering on being a crazy business
idea.idea. However— as ridiculous as itHowever— as ridiculous as it
sounds—joy is the core belief of oursounds—joy is the core belief of our
workplace.workplace. JoyJoy is theis the
reason my company, Menlo Innovations, areason my company, Menlo Innovations, a
customer software design andcustomer software design and
development firm in Ann Arbor, exists. Itdevelopment firm in Ann Arbor, exists. It
defines what we do and how we do it. Itdefines what we do and how we do it. It
is the single shared belief of our entireis the single shared belief of our entire
team.”team.”
——Richard Sheridan,Richard Sheridan, Joy, Inc.:Joy, Inc.:
How We Built a Workplace People LoveHow We Built a Workplace People Love

The systems software industry is tough asThe systems software industry is tough as
nails, fast-paced—and unforgiving. And yetnails, fast-paced—and unforgiving. And yet
Menlo CEO Richard Sheridan insists that hisMenlo CEO Richard Sheridan insists that his
raison d'être, competitive advantage andraison d'être, competitive advantage and
success “secret” is …success “secret” is … JOYJOY!!
Again, please think about this.Again, please think about this.
Carefully.Carefully.
What would be the literal translation in yourWhat would be the literal translation in your
world?world?
And:And: WHY NOTWHY NOT ??
(Seriously.)(Seriously.)

2.172.17 WhyWhy
NotNot
III?III?

Apple design:Apple design: “Huge“Huge
degree ofdegree of
carecare.”.”
——Ian Parker,Ian Parker, New YorkerNew Yorker, 23 March 2015,, 23 March 2015,
on Apple design chief Jony Iveson Apple design chief Jony Ives

““Huge degree of care” should—in myHuge degree of care” should—in my
thoroughly biased opinion—be thethoroughly biased opinion—be the
hallmark of every professional’shallmark of every professional’s
work. In our own fashion, we shouldwork. In our own fashion, we should
apply Jony Ive’s standard toapply Jony Ive’s standard to
everything we do.everything we do.
Starting—yes—with theStarting—yes—with the
emails we send.emails we send.
Why not?Why not?
Care-in-communication: What couldCare-in-communication: What could
be more important to a professional?be more important to a professional?

2.182.18
ORGANIZATIONSORGANIZATIONS
THAT ARE ASTHAT ARE AS
EXCELLENT/WELLEXCELLENT/WELL
DESIGNED AS ANDESIGNED AS AN
APPLE DEVICEAPPLE DEVICE

““New technology, by itself, has little economicNew technology, by itself, has little economic
benefit. … The economic benefits arise notbenefit. … The economic benefits arise not
from innovation itself, but from thefrom innovation itself, but from the
entrepreneurs who eventually discover ways toentrepreneurs who eventually discover ways to
put innovation to practical use—put innovation to practical use— and,and,
most criticallmost criticall y, from they, from the
ororgganizational chananizational chan ggeses
throuthrouggh which businessesh which businesses
reshareshappe themselvese themselves toto
take advantage of newtake advantage of new
technology.”technology.” —Marc Levinson,—Marc Levinson, The Box:The Box:
How the Shipping Container Made the World SmallerHow the Shipping Container Made the World Smaller
and the World Economy Biggerand the World Economy Bigger

The shipping container only “changedThe shipping container only “changed
the world” …the world” … decadesdecades ... after its... after its
creation. First “everything” had tocreation. First “everything” had to
change. That is, the entire nature ofchange. That is, the entire nature of
ports and the transportation systemports and the transportation system
writ large.writ large.
Which is to say, it’s the subsequentWhich is to say, it’s the subsequent
and painstaking and political and “non-and painstaking and political and “non-
instant” …instant” … ORGANIZATIONALORGANIZATIONAL
ARRANGEMENTSARRANGEMENTS ... that make all the... that make all the
difference in moving forward, not thedifference in moving forward, not the
technology per se.technology per se.

misleading/constrained word. E.g., mgt/standard usage =misleading/constrained word. E.g., mgt/standard usage =
Shouting orders in the slave galley.Shouting orders in the slave galley.
Consider, please, a more encompassing/more accurateConsider, please, a more encompassing/more accurate
definition:definition:
“‘“‘Management’ is theManagement’ is the
arrangement andarrangement and
animation of humananimation of human
affairs inaffairs in
pursuit of desiredpursuit of desired
outcomes.”outcomes.”
Management isManagement is notnot about Theory X vs. Theory Y/“topabout Theory X vs. Theory Y/“top
down” vs. “bottom up.” Managementdown” vs. “bottom up.” Management isis about theabout the
essence of human behavior (Drucker called managementessence of human behavior (Drucker called management
a “liberal art”), how we fundamentally arrange oura “liberal art”), how we fundamentally arrange our
collective efforts in order to survive, adapt—and, onecollective efforts in order to survive, adapt—and, one

As Peter Drucker, in particular, taught us,As Peter Drucker, in particular, taught us,
management is anmanagement is an artformartform of the utmostof the utmost
importance to humanity—consider the U.S.importance to humanity—consider the U.S.
Constitution, one of the greatest managementConstitution, one of the greatest management
documents in human history. (Yes, itdocuments in human history. (Yes, it isis aa
“management document.”)“management document.”)
We think of the care and craft that goes into theWe think of the care and craft that goes into the
design of, say, an Apple product. But we don’tdesign of, say, an Apple product. But we don’t
typically think in the same way about “managementtypically think in the same way about “management
architecture.” That is a mistake of the first order.architecture.” That is a mistake of the first order.
Arrangement of human affairs toArrangement of human affairs to
produce a desired and sustainableproduce a desired and sustainable
result is by definition Leadershipresult is by definition Leadership
Team Task #1Team Task #1.. I am urging you to think aboutI am urging you to think about
your organizational architecture—your organizational architecture— andand thethe
achievement of excellence thereinachievement of excellence therein —the same way—the same way
Steve Jobs thought about one of his landmark AppleSteve Jobs thought about one of his landmark Apple
devices.devices.

InIn Good BusinessGood Business,, Mihaly Csikszentmihalyi (theMihaly Csikszentmihalyi (the
FLOW guruFLOW guru ) argues persuasively that business has) argues persuasively that business has
become the center of society. As such, an obligation tobecome the center of society. As such, an obligation to
community is front & center. Business as societalcommunity is front & center. Business as societal
bedrock, per Csikszentmihalyi, has the RESPONSIBILITYbedrock, per Csikszentmihalyi, has the RESPONSIBILITY
to increase the …to increase the … “SUM OF“SUM OF
HUMAN WELL-HUMAN WELL-
BEING.”BEING.” Business isBusiness is NOTNOT “part“part
of the community.” In terms of how adults collectivelyof the community.” In terms of how adults collectively
spend their waking hours: Businessspend their waking hours: Business ISIS thethe
community. And should act accordingly. The (REALLY)community. And should act accordingly. The (REALLY)
good news: Community mindedness is a great way (thegood news: Community mindedness is a great way (the
BEST way?) to have spirited/committed/customer-BEST way?) to have spirited/committed/customer-
centric work force—and, ultimately, increasecentric work force—and, ultimately, increase
(maximize?) growth and profitability.(maximize?) growth and profitability.

BUSINESS ISBUSINESS IS NOTNOT “PART OF“PART OF
THE COMMUNITY.THE COMMUNITY.
BUSINESSBUSINESS ISIS THETHE
COMMUNITY.COMMUNITY.
HENCE BUSINESS ENTAILS ANHENCE BUSINESS ENTAILS AN
ENORMOUSENORMOUS MORALMORAL
COMPONENT.COMPONENT...
I love this!I love this!
(And “buy it” 100%.)(And “buy it” 100%.)
Read it.Read it.
Re-read it.Re-read it.
Think about it.Think about it.

Business’ Moral Imperative:Business’ Moral Imperative:
““[INCREASE[INCREASE
THE] SUM OFTHE] SUM OF
HUMAN WELL-HUMAN WELL-
BEING.”BEING.”
Source:Source: Good BusinessGood Business , Mihaly Csikszentmihalyi, Mihaly Csikszentmihalyi

Yup.Yup.
Wow.Wow.
(Up for it?*)(Up for it?*)
(*Actually, circa 2016, you have no(*Actually, circa 2016, you have no
choice.)choice.)
(( NowNow more than ever—e.g.,more than ever—e.g.,
tech driven changes are playingtech driven changes are playing
havoc with employment, and we’rehavoc with employment, and we’re
barely at the beginning of thebarely at the beginning of the
beginning.)beginning.)

Warren Bennis on superior forms ofWarren Bennis on superior forms of
enterprise:enterprise:
““SuccessfulSuccessful
humanhuman
communitiescommunities
””

Same idea.Same idea.
A bit more modest linguistically.A bit more modest linguistically.

2.192.19
SERVICESERVICE..
PERIODPERIOD..

ORGANIZATIONSORGANIZATIONS
EXISTEXIST TOTO SERVESERVE..
PERIOD.PERIOD.
LEADERSLEADERS LIVELIVE
TOTO
SERVESERVE. PERIOD.. PERIOD.

PERIOD.PERIOD.
(And if this is NOT your measure …)(And if this is NOT your measure …)

EXCELLENCE. Always.EXCELLENCE. Always.
If not EXCELLENCE, what?If not EXCELLENCE, what?
If not EXCELLENCE now, when?If not EXCELLENCE now, when?
EXCELLENCE is not an "aspiration."EXCELLENCE is not an "aspiration."
EXCELLENCE is not a "journey."EXCELLENCE is not a "journey."
EXCELLENCE is the next five minutes.EXCELLENCE is the next five minutes.
Organizations exist to SERVE. Period.Organizations exist to SERVE. Period.
Leaders exist to SERVE. Period.Leaders exist to SERVE. Period.
SERVICE is a beautiful word.SERVICE is a beautiful word.
SERVICE is character, community, commitment.SERVICE is character, community, commitment.
(And profit.)(And profit.)
SERVICE is a beautiful word.SERVICE is a beautiful word.
SERVICE is not "Wow."SERVICE is not "Wow."
SERVICE is not "raving fans."SERVICE is not "raving fans."
SERVICE is not "a great experience."SERVICE is not "a great experience."
Service is "just" that—Service is "just" that— SERVICESERVICE..

My take on “all this” … understandingMy take on “all this” … understanding
the role of enterprise by combining thethe role of enterprise by combining the
call tocall to SERVESERVE and the aspiration toand the aspiration to
EXCELLENCEEXCELLENCE..
((In Search of ExcellenceIn Search of Excellence , my 1982 book with Bob, my 1982 book with Bob
Waterman, is generally regarded as the book thatWaterman, is generally regarded as the book that
married the idea of Excellence per se to themarried the idea of Excellence per se to the
practice of business. The quest for Excellence ispractice of business. The quest for Excellence is
the unyielding bedrock of enterprise—as we saw it.the unyielding bedrock of enterprise—as we saw it.
And to that I now say with passion and urgency …And to that I now say with passion and urgency …
addadd serviceservice to excellence at the “co-top” of theto excellence at the “co-top” of the
veeeeery short list.)veeeeery short list.)

2.202.20
Not.Not.

““At a party given by aAt a party given by a
billionaire on Shelter Island,billionaire on Shelter Island,
Kurt Vonnegut informs his pal,Kurt Vonnegut informs his pal,
Joseph Heller, that their host,Joseph Heller, that their host,
a hedge fund manager, hada hedge fund manager, had
made more money in a singlemade more money in a single
day than Heller had earnedday than Heller had earned
from his wildly popular novelfrom his wildly popular novel
Catch-22Catch-22 over its wholeover its whole
history. Heller responds …history. Heller responds …

““At a party given by a billionaire on Shelter Island, KurtAt a party given by a billionaire on Shelter Island, Kurt
Vonnegut informs his pal, Joseph Heller … that their host, aVonnegut informs his pal, Joseph Heller … that their host, a
hedge fund manager, had made more money in a single dayhedge fund manager, had made more money in a single day
than Heller had earned from his wildly popular novelthan Heller had earned from his wildly popular novel Catch-Catch-
2222 over its whole history. Heller responds …over its whole history. Heller responds …
‘‘Yes, but I haveYes, but I have
something he willsomething he will
never have …never have …
Source: John Bogle,Source: John Bogle, Enough. The Measures of Money,Enough. The Measures of Money,
Business, and LifeBusiness, and Life (Bogle is founder of the Vanguard Mutual(Bogle is founder of the Vanguard Mutual
Fund Group)Fund Group)

At a party given by a billionaire on ShelterAt a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, JosephIsland, Kurt Vonnegut informs his pal, Joseph
Heller … that their host, a hedge fund manager,Heller … that their host, a hedge fund manager,
had made more money in a single day than Hellerhad made more money in a single day than Heller
had earned from his wildly popular novelhad earned from his wildly popular novel Catch-Catch-
2222 over its whole history. Heller responds … Yes,over its whole history. Heller responds … Yes,
but I have something he will never have …but I have something he will never have …
enough.enough.

If there is a “must read” book in theIf there is a “must read” book in the
current century that examines thecurrent century that examines the
moral role of business in society, it’smoral role of business in society, it’s
Jack Bogle’sJack Bogle’s Enough. TheEnough. The
Measures of Money, Business,Measures of Money, Business,
and Lifeand Life..
(The Vonnegut-Heller exchange(The Vonnegut-Heller exchange
launcheslaunches
the book.)the book.)

CHAPTER TITLESCHAPTER TITLES
““Too Much Cost,Too Much Cost, Not EnouNot Enouggh Valueh Value””
““Too Much Speculation,Too Much Speculation, Not EnouNot Enougghh
InvestmentInvestment ””
““Too Much Complexity,Too Much Complexity, Not EnouNot Enougghh
SimSimpplicitlicity”y”
““Too Much Counting,Too Much Counting, Not EnouNot Enouggh Trusth Trust””
““Too Much Business Conduct,Too Much Business Conduct, Not EnouNot Enougghh
Professional ConductProfessional Conduct ””
““Too Much Salesmanship,Too Much Salesmanship, Not EnouNot Enougghh
StewardshiStewardshi p”p”
““Too Much Focus on Things,Too Much Focus on Things, Not EnouNot Enougghh
Focus on CommitmentFocus on Commitment ””
““Too Many Twenty-first Century Values,Too Many Twenty-first Century Values,
Not EnouNot Enouggh Eighteenth-Centurh Eighteenth-Centur yy ValuesValues””
““Too Much ‘Success,’Too Much ‘Success,’ Not EnouNot Enougghh
CharacterCharacter””

Revealing—and compelling—chapterRevealing—and compelling—chapter
titles fromtitles from Enough. The Measures ofEnough. The Measures of
Money, Business, and LifeMoney, Business, and Life ..
Read it.Read it.
P-L-E-A-S-E.P-L-E-A-S-E.

2.212.21

Excellence.Excellence.
Always.Always.
If notIf not Excellence,Excellence,
what?what?
If notIf not ExcellenceExcellence
now, when?now, when?

THE WORKS Chapter 2 Excellence

THE WORKS Chapter 2 Excellence

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