The Milkshake Moment

The
|Ilkshake
|oment
0verocmlne Stupld Svstems.
lclntless lclloles.
and Muddled Manaeement
tc Reallze Real Grcwth
STLvLN S. L|TTLL
1ohn wiley & Sons, |nc.
The
|Ilkshake
|oment
The
|Ilkshake
|oment
0verocmlne Stupld Svstems.
lclntless lclloles.
and Muddled Manaeement
tc Reallze Real Grcwth
STLvLN S. L|TTLL
1ohn wiley & Sons, |nc.
Copyright · 2008 ly Stovon S. Iittlo. All rights rosorvoJ.
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vII
Contents
Acknowledgments ix
Section 1: 7he MiIkshake Moment 1
Chaµfèr 1÷lf Was a Dark ahd Sformy Nlghf 2
Chaµfèr 2÷Half Lmµfy or Half Full! 9
Chaµfèr 2÷1hls ls Not a Cusfomèr Sèrvlcè 8ook 17
Section 2: Ioster ºCrowº versus Status Ouo 23
Chaµfèr 4÷ A 8rlèf Hlsfory of Orgahlzaflohs ahd
Mah(agèmèhf) 25
Chaµfèr 5÷1oddlèrs ahd 1rusf 21
Chaµfèr 6÷Somè Shocklhg 8èhavlor 29
Chaµfèr 7÷Lèssohs from fhè Cublclè Farm 49
Chaµfèr 8÷1hè Mahagèd 55
Chaµfèr 9÷1hè Lèd 59
t 65
Chaµfèr 10÷lf's Nèvèr abouf Mohèy 69
Chaµfèr 11÷1hè Wlzard of Wèsfwood 72
Chaµfèr 12÷ f Pushèrs 79
Chaµfèr 12÷NoClu Mofors, lhc. 85
Chaµfèr 14÷Purµosè lh fhè Plah 91
Chaµfèr 15÷You Goffa Sèrvè Somèbody 95
Section 4: Insource CruciaI 1udgment 101
Chaµfèr 16 ÷ Ldlcfs Madè oh Hlgh 102
Chaµfèr 17 ÷ Pèèvès from 8èlow 109
Chaµfèr 18 ÷ Parflclµafory Pollcy Maklhg 115
Chaµfèr 19 ÷ How 'bouf 1hèm Pomègrahafès! 119
Chaµfèr 20 ÷ Comè Harfèr or Hlgh Wafèr 125
Section 5: Address the ºPeopIe ProbIemº
ProbIem 131
Chaµfèr 21÷1hè Pèoµlè Problèm Polka 125
Chaµfèr 22÷Lrlc's Lxcallbur 129
Chaµfèr 22÷Why Pèoµlè Work 145
Section 6: Care for Customers 151
Chaµfèr 24÷Homè 1èam Droµs fhè 8all 155
Chaµfèr 25÷1hè 8lg Sècrèf fo Grèaf
Cusfomèr Sèrvlcè 161
Chaµfèr 26÷Lvèh Gèhlusès Sfrugglè fo Sèrvè 165
Chaµfèr 27÷lf 1akès a Hèro 172
Chaµfèr 28÷1hè Fufurè ls Alrèady Hèrè . . . Somè
Folks 1usf Arèh'f Gèfflhg fhè Mèmos 179
lndex 185
vIII
Ix
AcknowIedgments
lirst, l nooJ to thank ovoryono vho is incluJoJ in this look.
Whothor you aro a cliont, an acouaintanco, a horo, a lrionJ
or a lamily momlor, l sincoroly approciato you lotting mo
toll othors alout your Vilkshako Vomonts.
l also ovo a groat Jolt ol gratituJo to tho ontiro 200¯
Pov-Wov Posso. Jano Atkinson (vho is inJisponsallo), ToJJ
Sattorston (vho is thoughtlul), Tom Pyan (vho is hilarious),
Dan Hoath (vho is clovor), Iora Plaucho (vho is uniouo), anJ
Barlara Cavo HonJricks (vho is inspiring) all holpoJ mo loarn
to ûnally omlraco my innor milkshako. Tim Iollol vas also in
tho Nashvillo too-poo anJ continuoJ to lo my Jaily sounJing
loarJ anJ hoavy-liltor lor this ontiro projoct. ll pationco is a
virtuo, Tim Iollol is JostinoJ lor sainthooJ. Vuchas gracias to
his vilo anJ Jaughtor lor sharing thoir hully anJ JaJJy again
this yoar.
Spoaking ol saints, Violot Ciori is tho Varkoting Vavon,
hoart, soul, anJ tiroloss voico-ol-roason lor tho ontiro Stovo tho
Spoochor` toam. Nothing, incluJing this look, voulJ lo pos-
sillo vithout hor porsistonco anJ prolossionalism. Tho lact that
sho is also a truo lrionJ is liko a Jollop ol vhippoJ croam. Hor
laughtor is tho chorry on top. Ashloy NovasaJ is also a lrionJ
anJ colloaguo vho locomos my Wilmington oyos, oars, anJ,
most rocontly, ovon noso. Ploaso Jon`t loavo us Ashloy . . . vho
olso is going to liston to my Jiggly Wiggly` storios? TinaVario
Goossvoin koops us all organizoJ vith a smilo.
l am in groat Jolt to my oJitor anJ amigo Vatt Holt anJ all
tho othor groat lolks at Wiloy such as Viriam Palmor-Shorman
anJ Kim Dayman. Vatt, l roally approciato your alility to soo
vith my point-ol-viov ovory nov anJ again. l knov it can lo
a choro. Shannon Vargo vont voll loyonJ tho call ol Juty. Hor
oJits havo signiûcantly improvoJ this look.
Sistor Jonny, mothor ol tho incroJillo llotchor, vas an oarly
rough Jralt roaJor vho holpoJ mo vhittlo avay tho suporuu-
ous. Vothor Susan, Jaughtor ol tho logonJary Tom, proviJoJ
much ol tho Pav-Pav Jotails.
Vy nov lrionJ Joanno Bork also contrilutoJ immonsoly to
this ûnal proJuct, vith loth a koon oyo lor continuity anJ a
thorough unJorstanJing ol vhy Vilkshako Vomonts shoulJ
mattor. Thanks lor vorking on such a tight timo crunch Joanno.
Soo you in Soattlo.
linally, l voulJ liko to oxpross immonso gratituJo to Iora,
Alaina, GG anJ Tylor lor holping mo soo ovorything,` ovon
vhon tho JroaJoJ JoaJlinos clouJoJ my vision. Iiko Violot
says, l am nov olûcially tho luckiost man in tho vorlJ. Soonor!
x
SectIon 1
The |Ilkshake |oment
( )
3
Chapter 1
Ìt Was a 0ark and
Stormy NIght
Tho story you `ro alout to roaJ is truo. Ol courso ovory-
thing you vill roaJ in this look is truo, lut this story is
particularly truo locauso it happonoJ to mo. A lov yoars
ago l travoloJ to Baltimoro, VarylanJ, lor a spoaking
ongagomont.
Anyono vho travols lor lusinoss knovs that it is
harJly glamorous. Altor 911, hovovor, it locamo ovon
moro lrustrating, anJ it koops gotting vorso. l Jon `t think
l ` J lo ovorstating it to say that lusinoss travol toJay is hor-
c: irrotriovally lost luggago, annoying socurity soarchos,
ights, inluriating rontal car policios,
lrazzloJ countor stall . . . l think you got tho picturo.
Dospito all tho traumas ol travol, l JociJoJ a lov
yoars ago to alvays koop a smilo on my laco. Tho vay l
look at it: il tho lusinoss travol inJustry gots tho lost ol
mo, thoy vin anJ l loso. l just can ` t allov that to happon.
It Was a 0ark and Stormy NIght
4
The hIIkshake homent
l koop a smilo on my laco ly kooping my oyo on a
prizo. Vy prizo at tho onJ ol ovory lusinoss travol Jay is
a vanilla milkshako . . . a thick, goooy, luscious, inJulgont
vanilla milkshako. l `m talking a hanJ -JippoJ, olJ - lashionoJ,
malt - shoppy kinJ ol milkshako. l Jon `t just liko òm: l I·:~
òm. Both my caroor anJ my montal voll -loing litorally
JoponJ on thom. Tho imago ol that milkshako is tho pro-
vorlial Jangling carrot that gots mo through ovon tho vorst
travol Jay.
cult Jay ol planos,
trains, anJ automolilos. l vas to arrivo at tho Baltimoro
Washington lntornational (BWl) Airport at ¯:00 P.V. lor
Jinnor vith my clionts at 8:00 P.V. Unlortunatoly, l arrivoJ
at miJnight. ln othor vorJs, thoro vas nothing out ol tho
orJinary so lar.
l gralloJ my lags anJ stooJ in a long taxical lino
to tako tho 20 -minuto riJo to Baltimoro `s loautilul lnnor
Harlor. l vas colJ, vot, tiroJ, anJ hungry, lut smiling,
locauso l vas going to got that vanilla milkshako. Pulling
up to tho hotol at this lato hour, tho thought occurroJ to
mo, At loast thoro von `t lo a long lino to chock in. ` But
onco insiJo l roalizoJ l vasn `t tho only ono having a Jil-
cult travol Jay. Apparontly tho ontiro Eastorn soaloarJ
vas similarly inconvonioncoJ, anJ it appoaroJ most ol
thoso travolors voro also staying at my hotol. l lacoJ a
30 - minuto vait just to chock in. K~~j )·u: ~)~ ·u II~
j::z~, ·I~:~ Þ~~j )·u: ~)~ ·u II~ j::z~
5
Tho thought ol that milkshako vas still vorking its
magic. l coulJ almost tasto it. Evoryono olso in tho lolly
must havo loon vonJoring vhy l vas smiling.
Evontually it vas my turn anJ l vas givon ono ol
thoso plastic magnotic koys lor room =809. l put ono lag
on oach shoulJor, truJgoJ ovor to tho olovator lanks,
room. Altor Jociphoring tho oloctronic Joor hanJlo scho-
matic, l ropoatoJly svipoJ my plastic koy -lut to no
avail. lt JiJn `t vork. Tho room romainoJ lockoJ. So closo,
yot so lar.
As any lusinoss travolor knovs, gotting a plastic koy
that actually vorks is alvays an illy proposition at lost.
ln my ovn porsonal oxporionco, tho inciJonco ol hotol
koy lailuro is Jiroctly proportional to tho cumulativo roaJ
oJ
lack Jovn to tho lolly.
K~~j )·u: ~)~ ·u II~ j::z~, ·I~:~ Þ~~j )·u: ~)~ ·u
II~ j::z~ ·~~ )·u: u:IÞ:IuÞ~ 1~ )·u: u:IÞ:IuÞ~
l roturnoJ to tho lront Josk anJ got in lino vith tho
othor pooplo holJing laulty room koys. l vas still tho only
ono smiling.
l roturnoJ to room =809 vith my soconJ koy anJ
this timo it vorkoJ. î~:: l JiJn `t ovon put tho lags Jovn.
6
l hurrioJ straight to tho phono anJ immoJiatoly hit tho
lutton lor room sorvico. As soon as l hoarJ tho ring on
tho othor onJ, my mouth logan to vator. Tho momont
haJ arrivoJ. lt vas timo to claim my prizo.
GooJ ovoning, Vr. Iittlo, this is Stuart in room sor-
vico. Hov may l holp you? ` Stuart `s voico lrimmoJ vith
youth. ·u:I~ II~ ~u¤~: I~u:~: J·: ·u~ · cI·cÞ :u II~ u·:u-
:u¤ \ot ho sounJoJ ouito polito anJ voll trainoJ. At this
point in tho transaction, l vas rolativoly oncouragoJ . . .
at this point, anyvay.
Stuart, l `J liko a vanilla milkshako, ploaso, ` l saiJ. A
soomingly simplo roouost, right? Woll, not ouito.
l`m sorry, Vr. Iittlo, lut vo Jon `t havo milkshakos, `
Stuart roplioJ rogrotlully.
ickoroJ.
Ouickly l rogroupoJ.
All right, Stuart, lot mo ask you this: Do you havo
any vanilla ico croam? `
\os, ol courso! ` ho rosponJoJ vith ronovoJ
onthusiasm.
Okay, Stuart, l ` J liko a lull lovl ol vanilla ico croam. `
7
\os sir, right avay, sir! ls thoro anything olso l can
Jo to sorvo you? ` Stuart askoJ.
\oah . . . Jo you havo any milk? `
\os, vo havo milk! ` Jontly.
All right, Stuart, horo `s vhat l voulJ liko you to
Jo. Ploaso sonJ up a tray vith a lull lovl ol vanilla ico
croam, hall a glass ol milk, anJ a long spoon. CoulJ you
Jo that lor mo, ploaso? `
Cortainly, right avay, sir, ` Stuart rosponJoJ triumphantly.
l hung up tho phono anJ a lov minutos lator thoro
vas a knock. Suro onough, at my Joor thoro vas a tray
vith a lull lovl ol vanilla ico croam, hall a glass ol
milk, anJ a long spoon -ovorything nooJoJ to mako a
vanilla milkshako. But ol courso thoy JiJn `t havo vanilla
milkshakos.
Nov lot mo ask you an important ouostion. ls Stuart
stupiJ?
9
Chapter 2
Half Empty or Half Full:
Soriously, is Stuart stupiJ? lt `s a logitimato ouostion. Cortainly
an argumont coulJ lo maJo lor Stuart ` s stupiJity.
Hovovor, lor all l knov, Stuart coulJ just as oasily
pull togothor procisoly vhat l orJoroJ, Jovn to tho hall
glass ol milk (a somovhat unusual roouost).
lrankly, Stuart `s lO is losiJo tho point. lor tho pur-
posos ol this look, lot `s assumo Stuart is not stupiJ. lt ` s
tho systom that ` s stupiJ.
Stuart ` s lohavior is not uniouo. Iiko tho vast major-
ity ol omployoos ovoryvhoro, Stuart vantoJ to Jo a gooJ
jol. To this Jay, ho prolally still thinks ho JiJ.
ln Chaptor 1 l promisoJ to toll you tho lull truth, anJ
horo it is: out ol tho 100 or so hotol rooms l stay in ovory
yoar, l run this oxporimont approximatoly hall tho timo.
lt ` s not ovory night, as somo hotols Jon `t ollor room sorv-
HaIf Empty or HaIf FuII!
10
this oxporimont only vhon a milkshako is not on tho
room sorvico monu. Voro olton than not, thoy u· havo all
tho ingroJionts to mako mo happy. \ot l usually onJ up
vith tho samo lull lovl ol ico croam, hall a glass ol milk,
anJ a long spoon (somo assomlly roouiroJ).
Why Joos this koop happoning? Why can `t inJiviJuals
liko Stuart Jolivor Vilkshako Vomonts? l `vo haJ plonty ol
timo to ponJor that ouostion nov that l `vo rocoivoJ ovor
200 Jo - it - yoursoll vanilla milkshakos lrom Amorica `s loaJ-
ing lusinoss hotols. Iot `s tako a look at somo ol tho unJor-
lying causos that loaJ to thoso systomic lroakJovns.
Stuart is stanJing at a point - ol - salo scroon popping in
orJors vith his company -issuoJ plastic accoss koy. lor all
intonts anJ purposos, his koy is as Jyslunctional as my
original room koy. ll his scroon Joosn `t say milkshako, `
thon a milkshako simply Joos not oxist, anJ tho most
magical koy in tho vorlJ can `t mako ono appoar. Tho sup-
posoJly loolprool systom is JosignoJ to onsuro that Stuart
can ` t mako tho organization appoar loolish. \ot ovon a
casual olsorvor can soo that tho systom has pushoJ tho
organization voll loyonJ loolish. lt is nov sitting souaroly
in tho lanJ ol lost opportunity. Hov ` s that lor irony?
Think alout this. l roprosont tho mothor loJo lor tho
lusinoss travol inJustry. Pomomlor, l stay in ovor 100
hotol rooms a yoar anJ l `m not oxactly prico sonsitivo.
11
Stuart coulJ havo chargoJ mo $25 lor that milkshako anJ
l voulJ havo loon happy to pay it.
l actually lool sorry lor tho major lusinoss hotol chains.
ln an ollort to stanJarJizo thoir systoms, thoy `vo takon inJi-
viJual juJgmont out ol tho oouation. Thoy sponJ lillions
ol Jollars in markoting to got pooplo liko mo through thoir
Joors anJ lillions moro in stall training to mako my kinJ
happy. \ot thoy continually llov it, Juo in somo part to
a stupiJ point - ol - salo systom. But that `s just tho tip ol tho
provorlial icolorg. lt goos much Joopor than that.
Iot mo ask you this: Do you think thoro vas a llonJor
in tho kitchon? No, it vas in tho lar. AnJ as anyono vho
has ovor vorkoJ in tho hospitality inJustry knovs, tho
lar stall anJ tho kitchon stall Jon `t alvays play nicoly
togothor. lor thom, sharing is olton a challongo. l vant
looJ anJ lovorago, ` anJ thoy `ro olloring mo looJ ` anJ
lovorago. ` Thoy `
varring lactions that havo loon Joing lattlo lor so long
thoy havo lorgotton vhat thoy ` ghting alout. ln lact,
many timos thoy `ro not ovon vorking lor tho hotol: Tho
tvo lunctions havo loon outsourcoJ to compoting organi-
zations. Nov, that ` s a stupiJ systom.
IogonJ has it that Stuart arrivoJ on tho lront linos
at tho hoight ol tho Groat BlonJor Wars ol 2004. Ho got
ro anJ is still a littlo skittish alout
12
cor
spocial orJors. `
UnJoultoJly, his tronchmatos havo convincoJ him that
kooping his hoaJ Jovn is tho only vay to survivo.
Any timo thoro is a lroakJovn liko this, tho root
causos go voll loyonJ tho olvious limitations ol a
thirJ - party point - ol - salo systom or tho intornal politics
ol llonJor accoss. Dospito my loolings to tho contrary
that latolul night, Stuart `s inalility to Jolivor a Vilkshako
Vomont is not tho onJ ol tho vorlJ. lt is, hovovor, symp-
tomatic ol a much lroaJor organizational malaiso.
This milkshako story is not just anothor oxamplo ol
laJ customor sorvico. lt `s much moro than that. This is a
largor talo ol lost opportunity. lnvarially, tho root causo
can lo tracoJ lack to lactors that aro much moro lunJa-
montal. Pool lack tho luroaucratic layors ol any organi-
- imposoJ
limitations, lrom antiouatoJ hiring practicos to poor vork-
nancial myopia.
Horo` s anothor vay to look at it.
lmagino, il you vill, a championship lootlall gamo
nal soconJs. \our toam,
lohinJ ly tvo points, has managoJ to movo tho lall
olJ goal rango. With tho clock stoppoJ, out trots
your toam ` olJ goal kickor, Shanky WyJovright.
13
A hush lalls upon tho 80,000 in attonJanco as millions
moro vatch anxiously at homo. Tho momont ol truth has
arrivoJ. Evorything hingos on this ono kick. ll Shanky
makos it, your toam scoros throo points anJ valks avay
vith tho championship trophy. ll ho missos it, your soason
comos to a suJJon anJ hoartlroaking onJ. ··u~ ·u,
·IuuÞ): ·Iuu -Þ): ·Iuu - Þ):
Bo ho horo or goat, tho hoaJlinos tho lolloving Jay
vill pin tho victory or Joloat on tho narrov shoulJors ol
Shanky WyJovright ( WyJovright Dolivors Dolight ` or
lans Cranky Ovor Bungling Shanky ` ).
Iiko Stuart, our kickor Shanky is just tho visillo mani-
lostation ol a much largor organizational unJortaking. Any
coach vill toll you that vinning or losing a gamo is alout
nito numlor ol vari-
allos loaJs a toam to this momont.
Hov voll JiJ thoy Jralt ollonsivo linomon lour yoars
ago? DiJ tho novly hiroJ strongth training coach mako a
Jilloronco in this yoar `s toam stamina? DiJ tvo soconJ -
ouartor ponaltios koop your toam lrom having a largor
halltimo loaJ? Hov many soason tickots JiJ tho lront
co soll? DiJ incroasoJ attonJanco loaJ to incroasoJ
onthusiasm? DiJ that incroasoJ onthusiasm sulsoouontly
contriluto to ono oxtra victory in tho rogular soason,
olJ aJvantago in tho play-
olJ aJvantago onsuro that you `ro playing
14
insiJo a Jomo in Docomlor, taking voathor conJitions
out ol Shanky ` s oouation?
ln oithor instanco, lo it Shanky or Stuart, tho outcomo
largoly JoponJs on position. lor Shanky, il tho toam can
got tho lall Jovn to tho 15 -yarJ lino, his succoss is protty
splitting tho uprights aro vory unlikoly. ln Stuart `s caso,
organizational shacklos koop him out ol position. Ho is so
lar romovoJ lrom tho organizational purposo that ho can
no longor soo tho ultimato goal. ln orJor lor an organi-
zation to truly succooJ, tho Stuarts ol tho vorlJ nooJ to
loliovo that thoy aro in a position to Jolivor Vilkshako
Vomonts.
ConsiJor your organization. Whon aro you saying no
vhon it voulJ lo much lottor anJ just as oasy to say
yos? Aro you roally putting pooplo in tho lost position to
grov? Do your curront policios, procoJuros, anJ systoms
onallo you to truly Jolivor?
So vhat is a Vilkshako Vomont? lt `s cortainly not a
lull lovl ol ico croam, hall a glass ol milk, anJ a long
spoon. lnstoaJ, a Vilkshako Vomont is a lravo inJiviJual
action, lo it lig or small, that lurthors tho causo ol grovth
in an organization. Vilkshako Vomonts matorializo vhon
inJiviJuals unJorstanJ tho organization `s truo purposo,
ll it, anJ aro givon
tho tools anJ tho lrooJom to mako it happon. Whon a
15
voulJ - lo grovth loaJor managing Joop vithin tho lov-
ols ol a stagnating organization has tho guts to stanJ
up anJ say, This iJoa is contrary to ovorything vo say
vo loliovo, ` that `s a Vilkshako Vomont. Whon a think-
ing porson is givon tho lrooJom to soizo an opportunity
allorJoJ ly chango, that `s a Vilkshako Vomont. Whon a
small lusinoss ovnor consciously puts purposo loloro
t, that `s a Vilkshako Vomont. Whon tho oxocutivo
t lounJation challongos tho sta-
tus ouo viovs ol hor tonuroJ loarJ momlors, that `s a
Vilkshako Vomont.
This look is alout that prociso, critical point in timo
vhon momlors ol tvonty - rst -contury organizations roal-
izo thoy aro allovoJ to Jo tho right thing -to sorvo tho
intorosts ol othors in orJor to grov tho organization -
instoaJ ol lolloving arcano, arlitrary rulos, procossos, anJ
procoJuros that actually hinJor grovth. Only vhon vo
romovo our ovn soll -imposoJ larriors can vo soizo nov
opportunitios in structuroJ sottings. A Vilkshako Vomont
can only lo roalizoJ vhon grovth loaJors cloarly com-
municato an organization `s truo purposo anJ grant inJi-
viJuals pormission to Jo vhatovor can lo Jono othically
to achiovo it.
17
Chapter J
ThIs Ìs a Customer
ServIce 8ook
l knov you `ro not stupiJ. Hov Jo l knov? lirst ol all,
you ` ro roaJing a look, vhich puts you ahoaJ ol most
pooplo. AccorJing to my pullishor, only 20 porcont ol lusi-
noss looks purchasoJ aro actually roaJ. Tho rost ol thom
just sit thoro looking improssivo up on a looksholl. l also
knov you `ro smart locauso you lought this particular
look, vhich is a tostamont to your astuto juJgmont.
AnJ vhilo your intolloct may lo suporior to that ol
your nonroaJing poors, tho vast majority ol thom aron ` t
stupiJ, oithor. l knov it may lo harJ to loliovo that
assistant managor Bill BlovharJ isn `t intolloctually chal-
longoJ, lut it `s usually only his actions that aro stupiJ.
Suro, plonty ol organizations havo a Junco or tvo on tho
payroll. Hovovor, vhon most pooplo lohavo stupiJly in
an organization, it usually has littlo to Jo vith thoir innato
lloJ vith rolativoly
smart pooplo Jo a vholo lot ol roally stupiJ things.
ThIs Is a Customer ServIce ßook
18
Tho liggost olstaclo to Vilkshako Vomonts lios in
tho vory naturo ol organizations anJ tho systoms thoy
luilJ anJ omlraco. Whilo supposoJly sotting thoir
sights on innovativo grovth initiativos, thoy aro con-
tinually shooting thomsolvos in tho loot. l vork vith
a viJo varioty ol organizations intorostoJ in grovth:
lortuno 500 companios, small closoly holJ lusinossos,
t lunJ -raisors, anJ local chamlors ol com-
morco. lnvarially, thoy all gravitato at somo point
tovarJ tho samo grovth ing lohaviors. To para-
phraso cartoon strip charactor Pogo, Wo havo mot tho
onomy anJ it is us. `
A smart system can work wIth a lIttle stupIdIty. but a
stupId system can ' t work wIth even a lot of smarts.
So vhat Joos it tako to lroak tho cyclo ol stupiJ-
ity anJ mix moro milkshakos? ln this look l Jiscuss tho
vo primary ingroJionts you nooJ to mako Vilkshako
Vomonts possillo:
1. lostor grov` vorsus status ouo
2. t
3. Solvo tho pooplo prollom ` prollom
4. lnsourco crucial juJgmont
5. Caro lor customors
( )
19
mix it up ` at tho
onJ ol oach chaptor. \ou ` nJ a lov oxtra toppings ` at
tho onJ ol oach soction.
Broaking cyclos starts vith tho Jolilorato actions ol a
JoJicatoJ grovth loaJor. l `m assuming that `s you. l Jon ` t
knov il you aro a company prosiJont, a county com-
missionor, or a novly hiroJ managomont trainoo. What l
Jo knov is that grovth is raroly acciJontal. Poal grovth
occurs only vhon truo loaJors actually loaJ, cloaring
olstaclos, illuminating voaknossos, championing changos,
anJ soizing opportunitios. ll you vant to grov, it is
incumlont upon you to smash tho olstaclos to grovth. ll
you vant to lo porcoivoJ as a truo loaJor, start lohaving
liko a cop on tho stupiJity loat.
l havo mot litorally thousanJs ol voulJ -lo grovth
loaJors, anJ l can honostly toll you that most aro moroly
managors. Thoir actions aro small anJ incromontal in
naturo, aimoJ at porpotuating tho status ouo. Muuu¤~::
anJ ¤:·uII aro raroly in tho samo mooting.
rst look vas calloJ TI~ 7 1::~JuIuII~ RuI~: ·J
·uuII 1u::u~:: ·:·uII ( John Wiloy 8 Sons, 2005). lt vas
vritton lor tho lusinoss ovnor looking to tako his or hor
group to tho noxt lovol. But upon its roloaso, a lunny
thing logan to happon. Big companios startoJ to soo that
ts anJ
20
laith - lasoJ institutions. Thoy all holpoJ mo soo that tho
issuos surrounJing grovth aro much tho samo across all
organizations. Evontually, l camo to unJorstanJ that thoso
rulos can lo applioJ across all human onJoavors.
Ol courso not all organizations vant to grov, lut tho
onos that Jon `t vant to aro tho oxcoptions. Vost aro try-
ing to grov somothing, on somo lovol. Vory lov organi-
zations aro vinJing thomsolvos Jovn on purposo. l havo
yot to soo a mission statomont that sooks to maximizo
stakoholJor Jissatislaction, thoroly rotarJing rovonuo anJ
moving closor to short -torm irrolovanco anJ long - torm
oxtinction.
noJ grovth ly top -lino anJ
lottom - lino incroasos. That `s hov you koop scoro in tho
gamo calloJ lusinoss. Naturally, grovth can moan much
moro than incroasoJ salos or rovonuo. lor a traJo asso-
noJ as incroasoJ momlor-
ship or strongor logislativo impact. lor a charity, it coulJ
vary lrom onhancoJ avaronoss to groator Jonations lor
rosoarch. Tho common point is this: Poal organizational
grovth isn `t a projoct. lt isn `t tho prolorroJ outcomo ol
a lov aJ hoc task lorco mootings. Poal grovth sorvos a
vorthy purposo loyonJ tho moro porpotuation ol tho
organization itsoll.
This look is alout that prociso momont, that critical
instant in timo, vhon tvonty rst -contury organization
21
porson ` roalizos thoy aro allovoJ to Jo tho right thing,
Jospito all oviJonco to tho contrary.
Only vhon organizations got out ol thoir ovn vay
can thoy achiovo roal, sustainallo grovth. Only vhon vo
romovo our ovn soll -imposoJ larriors can inJiviJuals
soizo nov opportunitios in an organizational sotting.
ln olloct, this look is a call to arms. PogarJloss ol
vho you aro, vhat you Jo, or vhoro you Jo it, it is up
to you to lo porsonally invostoJ in your organization ` s
grovth. l rogularly talk vith managors ` vho lamont, l
agroo vith ovorything you saiJ toJay, Stovo. Tho prollom
isn ` t mo - it ` s tho iJiots vho vork alovololovlosiJo
mo that just Jon `t got it. ` ll altor roaJing this look you
aro still cortain that it is tho othor pooplo in your organi-
zation vho aro truly hopoloss, thon you nooJ to ouit.
That ` s right. l moan you shoulJ litorally ouit Joing
vhat you ` nJ a placo vhoro you can
ourish. Iilo is vay too short to vasto your timo anJ
ollort in a stagnating onvironmont. l `m villing to lot
you ` ll como to roalizo instoaJ that it `s not thoso arounJ
you vho aro tho prollom. lt `s actually tho inhoront naturo
ol organizations that is your truo nomosis. lt takos guts to
loaJ othors avay lrom tho status ouo. Grovth roouiros
porsovoring, croativo, ovon couragoous inJiviJuals vho
aron` t alraiJ to mix it up.
SectIon 2
Foster "Crow" versus
Status 0uo
( )
24
Why aro so many organizations soomingly incapallo ol
Jolivoring Vilkshako Vomonts?
lor ono, organizations tonJ to lrooJ managors, not
loaJors. But managors aro not vhat vo nooJ in thoso
constantly changing timos. Simply managing to moot
tho status ouo vill not holp lostor grovth in tho luturo.
Sustainallo grovth roouiros tho guiJanco ol a truo
loaJor vho looks to tho luturo, grals opportunitios, anJ
unloashos ovoryono`s lull potontial.
Too olton, managors vithin organizations koop mak-
ing tho samo stupiJ mistakos. Iiko alcoholics lolloving
in tho lamily lootstops, thoy tonJ to koop managing tho
rsthanJ
oviJonco it Joosn`t roally vork. Vost ol thoir systoms
aro sot up to porpotuato oxisting procossos, rogarJloss ol
thoir olloctivonoss. Pooplo Jon`t liko chango at all, anJ
il thoy must chango, thon it locomos a managor`s jol
to ovor think tho translormation anJ mako it ovon moro
complicatoJ.
Why aro vo our ovn vorst onomios? Why Jo ovon
tho most succosslul organizations manago to scrov up
rogularly? Why is it so harJ to got ovon tho lasics right in
tho organizations ol toJay?
nJ somo ansvors, vo`vo got to look at vhoro vo
aro anJ tako a stop lack in timo to soo hov vo got horo.
25
A ßrIef HIstory of DrganIzatIons and han(agement)
Chapter 4
A 8rIef HIstory of 0rganIzatIons
and |an(agement)
Iot ` s laco it: On tho vholo, vo `ro not vory gooJ at this
thing vo call tho organization. ` l `ll lo citing somo primo
oxamplos ol organizational shortcomings throughout this
look, lut you alroaJy knov it `s truo vithout mo ovon try-
ing. Wo all knov it. Wo soo it all tho timo in our vork-
placos, schools, govornmonts, soltlall loaguos, anJ tho liko.
Why aro so many organizations so lrustratingly inolloctual?
Tho lost roason, l supposo, is that tho concopt itsoll
is so nov that vo havon `t haJ timo to mastor it. Whilo vo
aro all cortainly harJviroJ to lo social loings, apparontly
our gonotic coJo Joosn `t proviJo us a natural proJisposi-
tion lor luilJing anJ maintaining complox hiorarchios (as
opposoJ to tho instincts ol loos anJ ants).
l Jon `t knov your roligious loliols, anJ l `m not horo to
stop on thom, lut rocontly l hoarJ an anthropologist spoak
at a lusinoss conloronco vho saiJ that most oxports in
26
loings, or Homo sapions, havo loon roaming this planot
lor somo 200,000 yoars, givo or tako a lov millonnia. (ll
your numlor is Jilloront, lot `s just agroo vo `vo loon horo a
long timo.) lor tho vast majority ol our timo on this planot
vo voro huntor -gathorors, vith no roal nooJ lor organi-
c small, nomaJic trilo vo voro
trying to looJ anJ protoct.
Evontually, somoloJy vanJoring in tho lortilo Croscont
haJ a truo Vilkshako Vomont anJ oxclaimoJ, Hoy, ovory-
loJy, vo Jon `t havo to koop moving arounJ all tho timo!
This Jarn croscont is so Jarn lortilo, vo can grov anJ
horJ ovorything vo nooJ right horo! ` Thus vas lorn
tho agricultural rovolution, vhich just happonoJ a moro
10,000 yoars ago. What voro vo thinking lor tho provious
190,000 yoars? l guoss vo voron `t.
By somo 6,000 yoars ago, vo voro gotting so gooJ
at tho agriculturo thing vo haJ timo to luilJ ruJimontary
hiorarchios to holp prosorvo it. Nov organizational insti-
tutions voro croatoJ, incluJing govornmonts, roligions,
armios, anJ tax colloctors. A couplo thousanJ yoars lator
rst truo ompiros across tho
glolo. lnovitally, thoso ompiros locamo lulky anJ inol-
ciont. Iiko organizations toJay, thoy voro protty gooJ
at soll - o innovation.
Vilkshako Vomonts voro lov anJ lar lotvoon.
27
Tho inJomitallo povor ol tho inJiviJual provailoJ, hov-
ovor, anJ ovontually, tvo giant Vilkshako Vomonts roscuoJ
us lrom thoso Jark agos. Tho navigational compass gavo us
tho alility to oxploro nov placos anJ thon roturn saloly
homo to toll othors alout thom. Tho printing pross camo
shortly thoroaltor. SharoJ visJom loJ to tho Ponaissanco,
vhich loJ to tho Ago ol Poason anJ tho Enlightonmont.
ln 1¯¯6, vilJ -oyoJ rovolutionarios liko Thomas Jollorson
anJ Bon lranklin shook up tho vorlJ vith ono ol his-
tory ` s most prolounJ Vilkshako Vomonts. Thoir Joclara-
tion maJo tho auJacious claim that all mon aro croatoJ
ooual. ` ght lor
inJoponJonco locusoJ on tho povor ol organizations - in
this porioJ usually govornmonts -vorsus tho rights ol tho
inJiviJual.
Tho ninotoonth contury ushoroJ in tho nooJ lor an
c mothoJ
maJo mass proJuction possillo. To moot tho nooJs ol this
inJustrial rovolution, toJay `s moJorn managor vas croatoJ.
-
ors olton ouashoJ tho potontial povor ol tho inJiviJual.
Vinos got minoJ, railroaJs got luilt, anJ stool got lorgoJ,
lut olton vith a high human toll.
28
By tho 1950s, lostsollors liko TI~ Muu :u II~ ·:u)
1Iuuu~I ·u:I anJ TI~ ·:¤uu:zuI:·u Muu suggostoJ that
all vas not voll in Amorica ` s organizational hiorarchios.
AcaJomics also startoJ to rocognizo tho importanco
ol tho inJiviJual in organizational onJoavors. IoJ ly
Potor Druckor, tho lathor ol moJorn managomont, lusi-
noss schools logan to acknovloJgo that pooplo voron `t
machinos altor all. Druckor haJ moro than his lair sharo ol
orn managor in an inlormation ago. Ho ovon camo to Jis-
liko tho torms uuuu¤~u~uI anJ uuuu¤~:, saying, Vost ol
cult lor
pooplo to got thoir vork Jono. ` ln othor vorJs, Druckor
loliovoJ that moJorn managors actually provontoJ Vilkshako
Vomonts lrom ovor occurring.
Tho past 50 yoars ol organizational thinking havo soon
a soomingly onJloss sorios ol managomont tronJs anJ laJs,
ict: Organizations
aro locusoJ on tho porpotuation ol tho organization itsoll,
vhoroas inJiviJuals aro usually concornoJ vith thoir ovn
soll - intorost. This rolativoly nov paraJox croatos tonsion
lotvoon tho lorcos ol tho organization anJ tho vill ol tho
inJiviJual. Tonsion croatos onorgy that can lo usoJ lor
loth croation anJ Jostruction. ToJay, it is cloar that any
organization is maJo moro povorlul ly harnossing tho
potontial povor ol its inJiviJuals. By alloving inJiviJuals
29
to croato Vilkshako Vomonts, grovth loaJors aro putting
ovoryono in a position to vin.
So vhat `s tho point ol this short history ol (man)agomont?
lt ` s simply this: lt has takon us oons to got to this point, lut
vo nov knov vhat vorks. Wo knov vhich lunJamontal
practicos loaJ to organizational grovth. Wo also knov vhat
Joosn ` t vork. Thoro aro plonty ol organizations that knov
tho Jilloronco, thoroly roalizing roal grovth. Thoro simply
shoulJ lo moro liko thom, anJ that is tho point ol TI~
M:IÞ:IuÞ~ M·u~uI .
Pomomlor, lor 190,000 yoars vo JiJn `t havo any
organizations at all. Tho moJorn organization has loon
arounJ lor only a lov hunJroJ yoars. lnJooJ tho vory
vorJ ·:¤uu:zuI:·u itsoll JiJn `t havo toJay ` nition in
many English Jictionarios until altor WorlJ War ll. ll you
consiJor tho long history ol pooplo valking arounJ on
this planot, tho typo ol organization vo `ro lamiliar vith is
vory, vory young.
MIx lt Upl
Approach tho latost managomont laJs anJ lashions cau-
tiously. Thoy olton croato moro grovth larriors than grovth
opportunitios.
31
Chapter 5
Toddlers and Trust
ll alions camo to visit our planot toJay, thoy might oas-
ily assumo that toJJlors aro protty stupiJ. ToJJlors can ` t
looJ thomsolvos voll, havo littlo in tho vay ol spokon
languago skills, anJ oxhilit a vanton JisrogarJ lor sharp
tallo cornors. lnJooJ, thoy Jon `t havo tho sonso to avoiJ
olvious onvironmontal Jangors such as hot stovos anJ
oor
anJ cry. Thoroloro, alions coulJ oasily surmiso that toJ-
Jlors aro inlorior. But vo knov lottor.
Vany lusinossos, govornmont institutions, school sys-
toms, anJ associations aro vory much liko toJJlors, lull
ol potontial anJ promiso. Thoy aro not inhorontly stupiJ:
it ` s just that tho concopt ol an organization is so nov to
this vorlJ that many aro not allo to lully lonJ lor thom-
solvos. To roach thoir lull potontial, toJJlors nooJ truo
paronting, not just carotaking. Iikoviso, in orJor to grov,
organizations nooJ truo loaJorship, not simply manago-
mont. lnJiviJuals in organizations yoarn lor loaJors thoy
can trust anJ, in turn, lollov.
ToddIers and Trust
32
c aroas
in vhich grovth ontropronours shoulJ concontrato thoir
timo, monoy, anJ ovorall ollort. lt `s vithin thoso sovon
nJ tho
innovations anJ ovolutions that lostor sustainoJ grovth.
What l `vo como to loarn is that grovth loaJors aro Jis-
tinctivo not only in thoir actions, lut also in thoir attrilutos.
c attrilutos aro moro liko porsonality traits than
truo managomont skills, anJ thoy ultimatoly luilJ TPUST:
1 imoly
R oalistic
U nscriptoJ
S onsitivo
1ransparont
1ImcIv - Evory Jay l Joal vith pooplo vho say thoy
vant to grov thoir company, community, or association.
AnJ l knov thoy truly moan it. Olton ono ol tho koy lac-
tors that impoJo thoir progross, hovovor, is hov thoy
chooso to allocato thoir timo anJ that ol othors. Whon
nJ that
thoy rovort lack to thoir Jolault sotting -vhat thoy knov
ll thoir Jays vorking on tho tasks thoy aro
most comlortallo comploting.
ln contrast, succosslul loaJors Jovoto tho majority ol
thoir timo to thoso aroas that truly nooJ it. Thoy mako
33
ToddIers and Trust
timoly Jocisions as olton as Jocisions aro nooJoJ - no
moro anJ no loss.
lloJ vith activity lor
activity ` s sako. IoaJors unJorstanJ tho naturo ol timo
anJ aro skilloJ at prioritizing it to mako an impact. Thoy
unJorstanJ that loing timoly Joos not como lrom Day -
Timors, longor hours, or an incroasing vorkloaJ. lor
somo, this provoss is innato. lor othors it is a skill that
must lo honoJ through oxporionco. \ot mako no mistako
alout it: it is impossillo to loaJ a grovth chargo vithout
mastoring tho importanco ol timo.
|ost managers sImply get up and do what they want
to do. Crowth leaders get up and do what needs to
be done.
RcaIIstIc - Vany joko that roality is ovorratoJ. lt cor-
tainly is oasior to Jon our roso -coloroJ glassos anJ soo
only vhat vo vant to soo. What Jistinguishos grovth
loaJors is thoir unrolonting locus on vhat roally is anJ
vhat truly can lo. Whilo positivo thinking has its placo,
Jolusions aro Jangorous.
Our proJuct is tho lost. ` Our toam is suporior. ` Our
customors lovo us. ` Our causo is moro important than
any othor. ` R~uII). Iot `s can tho ompty slogans, tako Jovn
( )
34
tho lannors, anJ throv avay tho T -shirts. ToJay, it takos
a pragmatic roalist to soparato tho truo picturo lrom tho
convontional groupthink.
lacing roality isn `t moroly a gooJ iJoa: it `s an impor-
ativo. \our organization is JoponJing on somoono to
challongo tho organization `s most closoly holJ loliols
toJay. Why coulJn `t that lo a loaJor liko you? Too olton,
closoly holJ loliols aro kopt on our sholvos long past
thoir oxpiration Jatos. Grovth loaJors sook only tho truth
anJ volcomo any anJ all roality chocks.
UnscrIptcd -
tics. Pooplo aro simply jaJoJ, anJ vhy shoulJn `t thoy
lo? Ovor tho past 50 yoars vo `vo livoJ through JisgracoJ
icts, pilloroJ ponsions,
anJ nov anJ improvoJ ` proJucts that aro cloarly noi-
thor nov nor improvoJ. Wo livo in a vorlJ vhoro much
ol vhat comos at us lrom organizations is spin, propa-
ganJa, anJ JistortoJ hall -truths. lt shoulJ lo olvious
to any tvonty rst -contury loaJor that many pooplo aro
roluctant to loliovo anything. Evoryono `s lullshit Jotoctor
noly calilratoJ.
What vo long lor is authonticity. Wo vant loaJors vho
spoak plainly anJ lrom tho hoart, not lrom talking points.
Wo vant lossos vho rojoct corporato mumlo jumlo. Wo
vant prolossionals vho Jon `t cloak thomsolvos in a llan-
kot ol C\A - spoak.
35
ToddIers and Trust
ln orJor to loaJ, it is critical to mastor tho art ol authon-
ticity. Pojoct tho tiroJ clich os, loso tho latost luzzvorJs, anJ
say vhat you moan anJ moan vhat you say.
ScnsItIvc - This is a loaJoJ torm. Whilo it has many
nitions, horo l moan porcoptivo. Sonsitivo loaJors
aro acutoly avaro ol thoir surrounJings anJ aro koonly
olsorvant. Thoy havo an intuitivo knack lor unJorstanJ-
ing tho motivations ol othors. Thoy aro allo to lool tho
laroly porcoptillo vinJs ol chango long loloro tho actual
storm. Thoy havo tho uncanny alility to gain insight lrom
soomingly Jisparato Jata.
Hov voll Jo you roaJ othors in complox social situ-
ations? Hov much Jo you trust your gut loolings? Hov
voll Jo you hanJlo Jisplays ol omotion in yoursoll anJ
othors? Hov oasily Jo you movo lrom porcoption to
action?
Vost grovth loaJors aro naturals at thoso typos ol
skills. Othors nooJ to rogularly oxtricato thomsolvos lrom
Jay - to - Jay activitios to vork on thom. Eithor vay, loing
sonsitivo is an attriluto that givos loaJors anothor arrov
in thoir organizational grovth ouivor.
1ransparcnt - lt ` s human naturo not to trust thoso
vho attompt to hiJo things lrom us. lor instanco, vhon
an organization gots into troullo anJ spirals JovnvarJ
locauso ol a pullic rolations crisis, it noarly alvays has
36
somothing to Jo vith not loing transparont. Vost ol tho
groat corporato anJ political scanJals ol tho moJorn ago
havo haJ moro to Jo vith covor -ups than vith tho origi-
nal act ol vrongJoing itsoll.
ln contrast, pooplo anJ organizations that aro trans-
paront in thoir actions aro tho onos that consistontly grov
anJ como out ahoaJ in tho long run. Thoso vho aro
lorthcoming vith inlormation -gooJ anJ laJ -can moro
olloctivoly loaJ a toam to accomplish groat things.
An organization itsoll can anJ shoulJ lo transpar-
ont, lut to lo so it nooJs loaJors vho aro transparont in
thoir actions. An activo loohivo hanging in a troo looks to
mo as ominous as tho Doath Star in a ·Iu: W u:: movio.
nitoly Jon `t trust it. But havo you ovor soon a cross
soction ol a loohivo? By placing it lohinJ glass vo can
ciont organi-
zation. Somohov, knoving vhat oach ol thoso lusy loos
is up to puts my minJ at oaso.
Employoos, customors, vonJors, anJ sharoholJors
knov vhat to oxpoct lrom transparont loaJors. lostoring
Jonco. lt can
lo tompting to hiJo prolloms, lut tho transparont loaJor
knovs that tho truth ovontually slips out anyvay - anJ
olton looks vorso than it JiJ originally. As an anciont
Eastorn aJago says, Throo things cannot lo hiJJon lor-
ovor: tho sun, tho moon, anJ tho truth. `
37
ToddIers and Trust
MIx lt Upl
Projoct authonticity to gain TPUST. Tap into tho povor
ol inJiviJuals anJ unJorstanJ that thoy aro moro vary ol
loaJors than ovor loloro. Tho only logical rosponso is lor
you to got roal to oarn thoir TPUST.
Chapter 6
Some ShockIng 8ehavIor
Philip ZimlarJo anJ his luJJy Stanloy Vilgram voro
unJoultoJly laughing ono spring Jay in 1950. Tho high
school soniors at Jamos Vonroo High School in tho
Bronx, Nov \ork, voro noaring graJuation. ZimlarJo
haJ spont tho provious yoar as a shunnoJ outsiJor at
North HollyvooJ High School. (Ho lator loarnoJ that
thoro haJ loon a rumor ho vas lrom a maûa lamily.) This
yoar, hovovor, ho haJ loon choson Jimmy Vonroo ` - tho
stuJont loJy ` s pick as tho most popular kiJ in tho class.
ZimlarJo anJ Vilgram lounJ it laughallo that a kiJ
coulJ translorm lrom ono oxtromo to anothor in such
a short timo. Thoy loth roachoJ tho conclusion that
ZimlarJo haJ not changoJ. Tho situation haJ changoJ.
Situational psychology voulJ play a major rolo in
loth loys ` livos. Vilgram, tho son ol Jovish immigrants
oscaping porsocution in Europo, conJuctoJ ono ol tho
tvontioth contury `s most lamous psychological oxpori-
monts. ln an ollort to lottor unJorstanJ tho vo voro just
Some ShockIng ßehavIor
39
40
lolloving orJors ` Jolonso ol Nazi var criminals, Vilgram
sot out to moasuro tho villingnoss ol avorago pooplo to
porlorm acts that conuictoJ vith thoir ovn porsonal con-
scioncos. His lrionJ ZimlarJo, also a soconJ - gonoration
immigrant, lator conJuctoJ an ooually lamous oxpori-
mont stuJying tho ollocts ol oloJionco anJ authority.
Tho Vilgram oxporimont anJ ZimlarJo `s StanlorJ prison
oxporimont can argually lo JoscriloJ as tho most inuu-
ontial, controvorsial, anJ voll -knovn rosoarch into tho
naturo ol lohavior in an organizational sotting.
Vilgram ` s oxporimont vas rathor simplo. Suljocts
voro loJ to loliovo that thoy voro participating in a stuJy
on hov pooplo loarn. Iittlo JiJ thoy knov that thoy voro
tho onos actually loing stuJioJ -ovoryono olso involvoJ
in tho oxporimont vas part ol a ruso. Each participant
vas askoJ to aJministor an ovor -incroasing oloctrical
shock to anothor voluntoor loarnor ` as punishmont lor
ansvoring ouostions incorroctly. No actual shocks voro
aJministoroJ, lut tost suljocts loliovoJ that thoy voro. (Tho
loarnors ` voro actors vho loignoJ incroasing lovols ol
pain vith ovory jolt.)
Participants voro tolJ that tho shocks thoy aJministoroJ
startoJ at a rolativoly lov 15 volts. Vany tost suljocts voulJ
hositato to continuo upon roaching 135 volts. Hovovor,
onco assuroJ that thoy voulJ not lo holJ rosponsillo lor
thoir actions anJ that tho olûcials voulJ tako caro ol tho
loarnors ` moJical nooJs, all continuoJ vith thoir zapping
41
lohavior. lncroJilly, 65 porcont ol oxporimont suljocts
JolivoroJ tho ultimato 450 -volt shock, Jospito sooing anJ
hoaring tho oxcruciating pain thoy voro inuicting. Not ono
rolusoJ to aJministor shocks loloro roaching tho 300 - volt
lovol, ovon though thoy voro proviJoJ vith a chart that
shovoJ this lovol loing just short ol causing oxtromo
intonsity shock. `
Thoso voro ranJomly soloctoJ, rogular guys. Dospito
oxprossing ompathy lor thoir victims, thoy voulJ con-
tinuo to inuict harm simply locauso a porcoivoJ authority
ûguro in a lal coat vas asking thom politoly to Ploaso
continuo. ` Thoy voro lroo to loavo tho oxporimont at any
timo, lut thoy JiJn ` t.
luturo variations on tho oxporimonts provoJ that vari-
allos such as gonJor, localo, anJ ovon tho inloronco that
tho loarnor haJ a hoart prollom ` JiJn `t signiûcantly altor tho
outcomo ol tho original ûnJings. Dr. Thomas Blass, a pro-
lossor in tho Univorsity ol VarylanJ systom, has stuJioJ
ovory sulsoouont attompt to roplicato Vilgram `s shock-
ing oxporimont. Ho lounJ that throughout tho vorlJ 61 to
66 porcont ol pooplo aro lull -voltago shockors, vory closo
to tho statistical rango ol tho original oxporimont. Whon
tost suljocts voro allovoJ to givo vorlal commanJs to
somoono olso, as opposoJ to actually physically throving
tho svitch thomsolvos -in othor vorJs, vhon thoy took
on tho rolo ol a managor -villingnoss to aJministor tho
lull 450 volts ol juico incroasoJ to ovor 90 porcont!
42
\ikos! Talk alout pointloss anJ stupiJ lohavior. \ot
a grovth loaJor cannot ignoro this strong tonJoncy lor
pooplo to llinJly conlorm to ovon tho most Jostructivo
practicos. Dospito pooplo `s prolossoJ othical convictions,
authority ûguros vill alvays ûnJ it vory oasy to pull tho
strings ol thoir suljugatoJ puppots.
Ton yoars altor tho original stuJy, Vilgram `s olJ
lrionJ ZimlarJo conJuctoJ an ooually simplo anJ pro-
lounJ oxporimont at StanlorJ Univorsity. Sovonty - ûvo
young mon rosponJoJ to a novspapor aJ olloring monoy
to tako part in a tvo -vook prison simulation. ` This list
vas vhittloJ Jovn to 24 ly ZimlarJo `s toam, lasoJ on
vho vas JoomoJ to lo tho most montally hoalthy. `
Tho oxporimont logan to unravol altor only tvo Jays
anJ vas lorcoJ to shut Jovn altor six. Both guarJs anJ
prisonors ouickly assumoJ tho vorst aspocts ol thoir arli-
trarily assignoJ rolos. GuarJs locamo incroasingly saJis-
tic, vhilo prisonors ouickly shovoJ signs ol Jospair anJ
hopolossnoss.
Whon placoJ in ovon a mock prison onvironmont,
thoso soomingly voll -aJjustoJ participants ouickly oxhil-
itoJ oxtromo lohavior. Wo `ro talking alout somo protty
crazy stull horo: prisonor rovolts, hungor strikos, uso ol
pain as punishmont, rovokoJ parolos, solitary conûno-
mont, anJ physical humiliation. Don `t lorgot, thoso voro
supposoJly tho most montally hoalthy onos!
43
Evon ZimlarJo, vho haJ appointoJ himsoll prison
varJon, loll victim to tho rolo iJontity crisis. On Jay lour,
upon hoaring ol a rumoroJ prison lroak, ho trioJ (alloit
unsuccosslully) to movo tho oxporimont lrom a StanlorJ
lasomont to a local jail. Iuckily, thoso actual prison olû-
cials voron ` t part ol tho Jotoriorating oxporimont.
lt took an outsiJo olsorvor to lring tho ûasco to an
onJ. ZimlarJo `s graJuato stuJont girllrionJ anJ luturo
vilo stoppoJ ly to conJuct suljoct intorviovs. PopulsoJ
ly tho ovorall conJitions, sho immoJiatoly rocognizoJ tho
inhumano naturo ol tho oxporimont. Sho ovontually con-
vincoJ ZimlarJo to shut it Jovn.
At somo lovol tho tost suljocts alvays knov that this
vas just a simulation, yot thoy apparontly coulJn `t stop
thomsolvos lrom lohaving in vholly inappropriato man-
nors. Pomomlor, this vas all stagoJ anJ supposoJly con-
trolloJ. lmagino vhat `s possillo in tho uncontrolloJ vorlJ
vo livo in.
lt ` s oasy to Jismiss thoso oxporimonts as moro aca-
Jomic anocJotos. \ou may lo saying to yoursoll, Okay,
thoy ` ro intorosting, lut vhat Jo thoy havo to Jo vith
Jolivoring Vilkshako Vomonts? What possillo rolovanco
Jo thoso oxporimonts havo lor mo toJay? `
ln tho spring ol 200¯, aJvancoJ placomont high
school lroshmon in Waxahachio, Toxas, took part in
44
a throo -vook loarning simulation JosignoJ to lottor
unJorstanJ intoloranco Juring tho Holocaust. StuJonts
voro ranJomly assignoJ rolos as Gormans ` anJ Jovs. `
AllogoJly, tho Gorman ` stuJonts hit, spat upon, anJ
pullicly JograJoJ tho Jovish ` stuJonts. A loarning oxpo-
rionco moant to toach tho ills ol Jiscrimination ` Jogon-
oratoJ lack into pattorns oorily rominiscont ol tho Jark
porioJ thoy voro stuJying.
Horo`s anothor rocont variation that `s ovon moro Jis-
turling. DaviJ Stuart, a 3¯ - yoar - olJ lloriJian, vas arrostoJ
lor a sorios ol prank calls. Ovor a 10 -yoar porioJ starting
in 1994, Vr. Stuart (no rolation to our voulJ -lo milkshako
makor) placoJ Jozons ol calls to last -looJ rostaurants, proJ-
Jing managors to intorrogato young lomalo omployoos.
By protonJing to lo a polico olûcor, ho vas allo to por-
suaJo storo managors anJ othor omployoos to conJuct
luJicrously inappropriato acts involving thoso vulnorallo
young vomon. His calls loJ to strip soarchos, physical
loatings, anJ soxual aluso ol tho so -calloJ suspocts, vith
¯0 JocumontoJ casos occurring lrom Junoau, Alaska, to
HinsJalo, Goorgia.
Horo`s tho crazy thing: Vr. Stuart vas novor physi-
cally in any ol thoso locations. Ho vas simply a supposoJ
authority ûguro on tho othor onJ ol a phono lino. Exports
commonting on this porpotrator `s actions notoJ that ho
likoly targotoJ last -looJ outlots locauso thoy tonJ to havo
rigiJ, highly structuroJ culturos that omlraco unilormity.
45
Thoso managors knov oxactly hov long lronch lrios voro
to stay in tho lryor anJ hov many timos rostrooms voro to
lo inspoctoJ in a givon Jay. But thoro vas nothing in thoir
omployoo manual that voulJ proparo thom lor an author-
itativo voico JomanJing omployoo strip soarchos.
Thon ol courso thoro aro tho rocont ovonts at tho
Alu Ghrail prison in lrao. Whilo vo may novor knov
vho vas ultimatoly rosponsillo lor tho guarJs ` ogrogious
orrors in juJgmont, tho shocking picturos alono toll an all -
too - lamiliar talo.
Tho Vilgram anJ ZimlarJo oxporimonts, as voll as
thoso moro rocont oxamplos, point to an important com-
monality in human lohavior. Tho Jrivo lor organiza-
tional conlormity can causo almost anyono to loso thoir
moral compass anJ alility to think rationally. \ot rational
thinking is ono ol tho koy ingroJionts ol any Vilkshako
Vomont. Boloro his Joath in 1984, Stanloy Vilgram him-
soll saiJ, Whon an inJiviJual morgos . . . into an organi-
zational structuro, a nov croaturo roplacos autonomous
man, unhinJoroJ ly tho limitations ol inJiviJual morality,
lrooJ ol human inhilition, minJlul only ol tho sanctions
ol authority. `
Olviously tho saJistic lohavior ol tho shockors anJ
tho guarJs is Jisturling. But ooually troulling is tho
shoopliko montality ol tho victims. Whatovor ono `s rolo,
vo all must unJorstanJ that tho povor ol conlormity can
46
croato limitloss havoc vithin any organizational sotting.
VinJloss conlormity cortainly Joosn ` t loaJ to grovth.
As a grovth loaJor, it is incumlont upon you to
koop a constant vigil vith rogarJ to thoso phonomona.
Aro thoro saJist -liko managors in your organization? Do
you knov hov many vithin tho ranks ol your vork-
lorco lool hopolossly povorloss? Aro you allo to tako a
stanJ against loth tho guarJs ` anJ tho prisonors ` you
oncountor anJ say, Hoy, your lohavior isn `t holping us
got vhoro vo vant to go `? What happons to somoono in
your organization vho ouostions tho JotachoJ voico ol
authority? Will you roluso to throv tho svitch vhon your
conscionco sounJs an alarm?
Tho alsurJity ol human conlormity can truly lo a puz-
zlo. Human lohavior olton loaJs to hoaJ -shaking incroJulity.
ln rosoarching thoso tvo oxporimonts, l vas olton
rominJoJ ol hov it lools vhon l got invitoJ into tho innor
sanctum ol many organizations. lt lroouontly sooms as il
l ` vo stumlloJ into tho miJJlo ol a lunatic cult. l havon ` t
loon thoro long onough to Jrink thoir conlormity Kool -
AiJ, anJ thoroloro thoir vorJs anJ JooJs striko mo as,
voll, laughallo -saJ, lrightoning, anJ countorproJuctivo,
lut novortholoss laughallo.
Spoaking ol laughallo, Jo you think Vilgram anJ
ZimlarJo voulJ laugh to loarn that tho last -looJ targoting
47
DaviJ Stuart vas a lormor lloriJa corroctions olûcor? Whilo
thoro is nothing lunny alout his Jopravity, my guoss is that
knoving Vr. Stuart haJ loon a lormor prison guarJ voulJ
not shock oithor ono ol thom.
MIx lt Upl
Koop your oyos opon lor llinJ conlormity. Noithor shock-
ors or shockoos can Jolivor Vilkshako Vomonts. lt `s tho
inJiviJuals vho havo tho courago to spoak out against
tho status ouo vho lostor grovth.
Chapter 7
Lessons from the CubIcle Farm
Vovios havo tho povor to lunJamontally impact our
viovs on almost any aspoct ol lilo. lor instanco, .u:uuI
H·u:~ lorovor changoJ hov pooplo porcoivo lratornitios.
To this Jay, gollors still ouoto linos lrom ·uuu):IucÞ No
mattor hov much my paronts vax nostalgic alout thoir
toon yoars, ·:~u:~ anJ .u~::cuu ·:uJJI: aro hov l ` vo
como to viov tho 1950s. A lov yoars ago tho ovnor ol
a Turkish travol agoncy tolJ mo that tho movio M:uu:¤II
E.j:~:: - tho story ol a young Amorican Jrug smugglor
c Turkish prison -still shovs up as
a provalont roason vhy Amoricans say thoy voulJ lo loss
than likoly to ovor visit Turkoy.
Dospito all having loon roloasoJ moro than 25 yoars
ago, thoso movios havo haJ a tromonJous impact on our
colloctivo psychos. Vovios croato porcoptions, anJ por-
coptions locomo roalitios.
At tho closo ol tho millonnium, anothor movio camo
out that is alroaJy having an ooually prolounJ impact
Lessons from the CubIcIe Farm
49
50
upon your roality (vhothor you knov it nov or not).
Tho movio ·JJc~ ·juc~
vorkplaco.
\oung soltvaro onginoor Potor Gillons vorks lor
lnitoch, a gonoric high -toch company that coulJ lo lasoJ
hatos his jol almost as much as his co -vorkors Jo. lrom
tho lnJian -Amorican Samir Naghoonanajar, vho com-
plains that noloJy ovor pronouncos his namo proporly,
to tho miJJlo -agoJ mumllor Vilton, vho vas laiJ oll
yoars ago lut vas novor inlormoJ, thoso haploss souls
strugglo to survivo in a hiorarchical holl.
Potor ` s groatost sourco ol lrustration is tho loss
Iumlorgh, a passivo -aggrossivo, vhito -collar miJJlo man-
agor vho minJlossly spoaks at Potor, not vith him. Tho
plot thickons vith tho introJuction ol tvo outsiJo con-
sultants knovn as Tho Bols, ` lrought in to rightsizo
lnitoch. lor Potor anJ his associatos, this moans that thoir
jols aro cloarly in jooparJy.
·JJc~ ·juc~ loaturoJ Jonnilor Aniston, star ol TV
mogahit 1::~uu:, anJ vas JiroctoJ ly Viko JuJgo, vho
haJ proviously scoroJ lig vith animatoJ TV comoJios
1~u::: uuu 1uII - H~uu anJ K:u¤ ·J II~ H:II Dospito all
this momontum, tho movio laroly maJo a llip at tho
co, narrovly rocouping its moJost $10 million
luJgot.
But this vas tho littlo comoJy that coulJ. Thanks to
snovlalling vorJ ol mouth anJ rolontloss TV airings,
it took on a lilo ol its ovn. lt ovontually solJ ovor six
million copios on viJoo anJ is still going strong. ·JJc~
·juc~ ` s impact on toJay `s vork culturo is onormous. Tho
torm TP· :~j·:I has locomo synonymous vith minJloss
cos ovoryvhoro. Going ·JJc~ ·juc~ `
on somothing is nov a popular torm rolorring to tho
loaJ charactors ` coromonious Jostruction ol a constantly
mallunctioning copy machino. Tho roal -vorlJ company
Svinglino haJ not solJ a roJ staplor (a prominont plot
Jovico in tho movio) lor yoars, lut tho company rointro-
JucoJ tho color as tho movio `s popularity grov anJ roJ
staplor JomanJ spikoJ.
ln hinJsight, it `s oasy nov to soo vhy ·JJc~ ·juc~
locamo vhat EuI~:Iu:uu~uI W~~ÞI) has calloJ a stoalth
llocklustor. ` lt has hit a norvo vith toJay `s young vork-
lorco. Tho movio vas purposoly shot in a stylo that con-
voyoJ a soul -sucking, Johumanizing onvironmont. Tho
25 -yoar - olJ classics -2UUI. . ·juc~ ·u)::~) anJ ·u~
1I~u ·:~: II~ ·ucÞ·· : N~:I Whilo at ono lovol ·JJc~
·juc~ vorks as a stanJarJ larco, thomos ol alionation
lms. Evon
tho antisoptic spaco is part ol tho story: Tho lighting
movio unlolJs, tho charactors lohavo incroasingly moro
liko rats trappoJ in a cago.
51
52
lms isn `t a ranting, raving tyrant.
lnstoaJ, it is tho inluriatingly calm anJ soomingly rational
voico ol roason that pushos our protagonists to tho oJgo.
cial Iumlorgh usos tho samo lilt-
ing, conJosconJing tono as ·juc~ ·u)::~) `s HAI tho com-
putor anJ ·ucÞ·· : N~:I `s Nurso Patchott. lor all throo,
thoir lorcoJ politonoss anJ lanal lantor aro lar moro
lrustrating than tho moro commonly portrayoJ scroam-
ing, roJ -lacoJ loss. Iumlorgh arrogantly ignoros vhat
his omployoos aro tolling him anJ just koops ropoat-
ing his mantras: \oahhhh . . . JiJ you soo tho momo on
this? ` anJ \oahhhh, l `m also going to nooJ you to go
ahoaJ anJ como in on SaturJay. `
lrom tho momont Potor ontors lnitoch `s culiclo larm,
it is oorily similar to an insano asylum or a soulloss spaco-
ship guiJoJ ly a talking computor. Potor is no longor a
porson. Ho is an automaton that cranks out moaning-
loss TPS roports. All ol tho vork anJ tho procossos por-
trayoJ involvo minJ -numling Jotails. Whonovor ho trios
to oxplain himsoll to suporiors, ho is mot vith a cannoJ
rosponso straight lrom Vismanagomont 301.
Pooplo laugh at ·JJc~ ·juc~ locauso it `s only slightly
moro luJicrous than vhat thoy soo arounJ thom. AnJ it ` s
cos. Pooplo vho vork in varohousos, con-
struction sitos, anJ rotail shops can all rolato to tho lamil-
iar thomos. ll you aro a loaJor vho hasn `t vatchoJ this
53
movio, l suggost you Jo it soon. lt is a lunny movio, lut
you ` ll also como to lottor unJorstanJ hov many pooplo,
ospocially youngor vorkors, lool alout suporvisors anJ
vork in gonoral.
lor an ontiro gonoration, this movio anJ tho novor,
similarly thomoJ TV sorios TI~ ·JJc~ aro thoir roality.
(At tho timo ol vriting this look, tho latost soason ol TI~
·JJc~ vas tho lost -solling DVD on Amazon.) This is vhat
my toonago son oxpocts to oncountor vhon ho goos to
vork in an organization: a placo vhoro your inJiviJuality
- vorkors
aro lackstalling loons, anJ you roport to a loss vho
caros only alout pointloss policios anJ procoJuros. This
kinJ ol vork onvironmont is porcoivoJ as tho coal mino
ol tho moJorn ago: instoaJ ol llack lung Jisoaso you got
llack soul Jisoaso.
Tho taglino lor this movio vas a vory simplo ono:
Work Sucks. ` That `s toJay `s stark porcoption, anJ thoro-
loro roality, in many organizations. Don `t lot yours lo ono
ol thom. Vanagors aro tolling toJay `s vorkors to think
outsiJo tho lox ` anJ yot koop sticking thom in culiclos.
l ` m not calling lor tho litoral ploving unJor ol tho
culiclo larm. lnstoaJ, l am suggosting that grovth loaJors
vhat thoy Jo roally mattors.
54
MIx lt Upl
locus on croating an onvironmont vhoro human loings
cioncy. \ou
nooJ ongagoJ human loings to Jolivor Vilkshako Vomonts.
Chapter 8
The |anaged
Pooplo in suporvisory rolos shoulJ lo loaJors. ShoulJ lo `
is tho oporativo phraso horo, locauso in most situations,
managors aron `t roally loaJors -rathor, thoy `ro lunctionar-
ios, oporativos, utilitarian taskmastors. Whonovor l intoract
vith anothor human loing in any typo ol transaction, it is
olvious to mo vho is loing managoJ anJ vho is loing
loJ. ConsiJor tho talo ol tvo oatorios.
l rocontly vont to a nico ltalian rostaurant in a major
vo
valkoJ in tho lront Joor, approachoJ tho hostoss stanJ,
anJ immoJiatoly noticoJ tvo things. Tho rostaurant vas
lull anJ tho hostoss vas missing. This vas my gathoring,
anJ l lolt rosponsillo lor socuring a tallo as ouickly as
possillo. Tho lull Jining room vas to my right. Tho lar ` s
complotoly ompty soating aroa vas immoJiatoly to my
lolt. l maJo an oxocutivo Jocision to Jiroct my group to
tho unoccupioJ tallos.
55
The hanaged
56
Hovovor, vo oncountoroJ a slight snag. All tho tallos
vo. Naturally, l sav a
simplo solution anyono voulJ havo no Joult soon as
voll: Iot ` s just push thoso tvo aJjoining tallos togothor. `
That ` s vhon all tho troullo startoJ.
Sir! Sir! Sir! \ou can `t Jo that, Sir! ` Wov. Ono logi-
cal manouvor anJ l vas hit vith a larrago ol Sir lomls `
lrom tho assistant lar managor. Sir ` can lo a polito
vorJ, ol courso, lut vo all rocognizoJ that in this con-
toxt hor uso ol tho vorJ Sir ` vas actually intornal coJo
lor Jorklaco. ` ( Va ` am ` lomls Jolivor a similar payloaJ.)
Whon l camo into tho rostaurant l think l vas Vr.
Iittlo, lut sho lot mo knov vory ouickly that l vas in lact
nov a sir. Cloarly l vas loing roprimanJoJ in lront ol my
ontiro party. l JiJn `t havo a chanco to oxplain or apolo-
gizo. Sir ` lomls voro oxploJing all arounJ mo. Sho pro-
cooJoJ to oxpounJ on \ou can `t Jo that, Sir! ` in moro
Jotail. Tho olvious ouostion is, ol courso, vhy not?
Why can `t l Jo that? l `ll aJmit l Jon `t knov lor suro,
lut l havo a protty gooJ guoss. lt vas a managomont
rulo, anJ rulos can ` t lo lrokon.
This rulo prolally camo alout in a stall mooting.
ngor - pointing
mooJ. Who, ho nooJoJ to knov, vas rosponsillo lor tho
tallo loing ovorturnoJ ly tho Jrunkon, loistorous party
ol 16 rugly hooligans tho vookonJ loloro? Ho prolally
aJmonishoJ tho ontiro stall vith a llankot varning ol
Don ` t lot thoso customors push you arounJ. ll thoy try to
movo tho tallos, just toll thom thoy can ` t Jo it. `
SuJJonly, any omployoo vho allovs a customor to
guro proJotorminoJ soating Josigns is a vimp
anJ not a toam playor. ` lt `s an us vorsus thom ` montal-
ity, anJ you can `t lot thom ` (i.o., customors) push you
arounJ.
Evontually vo got tho tallos all vorkoJ out anJ
tho looJ got ravo roviovs lrom my party. \ot tho Jam-
ago haJ loon Jono. lor mo, tho sir ` loml shrapnol
stung throughout tho moal. lt JiJn `t mattor hov gooJ tho
looJ vas: l alroaJy haJ a laJ tasto in my mouth. l havo
roturnoJ to this city many timos, lut l vill alvays stoor
cloar ol this particular rostaurant.
Cloarly this assistant managor vas just that, a managor.
Sho haJ loon taught that aJhoring to intornal rulos is moro
como. lt ` s as il tho rostaurant `s mission statomont roaJs:
lt is our goal horo at Don `s Iittlo ltaly to croato anJ
maintain a porloctly lalancoJ systom ol symmotrical
tallo placomont vithin a goomotrical griJ. Wo strivo to
lo tho inJustry loaJor in symmotrical tallo placomont.
Wo vill ompovor our omployoos to manago any situ-
guration.
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The hanaged
58
MIx lt Upl
Pomomlor that a managor `s mission shoulJ novor sololy
locus on tho intornal. Voro olton than not, Vilkshako
Vomonts can only lo juJgoJ ly tho oxtornal vorlJ.
Chapter 9
The Led
Iot ` s contrast this lrontlino intoraction lrom tho past
chaptor vith anothor rocont oxporionco l haJ in a Jillor-
ont major motropolitan aroa in ViJJlo Amorica. This story
logins vith mo arriving oarly lor a particularly important
Jinnor mooting. l valkoJ in anJ immoJiatoly sav a Jin-
ing room to my lolt anJ a lar vith a soating aroa to my
right. l oxplainoJ to tho hostoss that l vas oarly, anJ sho
suggostoJ l vait at tho lar until my party arrivoJ.
Tho hostoss oscortoJ mo into tho lar aroa anJ tolJ
tho othor gathoroJ omployoos, This gontloman is oarly
lor his rosorvation, anJ it ` rst timo horo. Ploaso
mako him lool volcomo. ` That `s vhon Boatrico vont into
lull - on sorvico moJo.
Hi, my namo is Boatrico. Wolcomo to Sam `s Stoak
Houso! What ` s your namo? `
Stovo Iittlo, ` l ouickly roplioJ.
The Led
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WoulJ you prolor Stovo ` or Vr. Iittlo ` ? ` sho thon askoJ.
no, ` l ansvoroJ.
Okay, Stovo, it `s a ploasuro to moot you. \ou `ro going
to lovo it horo. Can l start you oll vith a colJ lovorago? `
Ono loor anJ ono orango juico lator, l haJ como to
olsorvo hov Boatrico, Jospito having a titlo ol lar man-
agor, vas also a giltoJ grovth loaJor. Tho lar vas protty
lull, anJ pooplo voro rogularly loaving tho aroa oithor to
gral a tallo or to hoaJ homo. As thoy lolt, ovory patron
JopartoJ vith a porsonalizoJ gooJ -lyo lrom Boatrico.
Thanks lor coming, HarolJ. Soo you noxt timo! Enjoy
your Jinnor, Varia anJ Hoathor! Happy annivorsary, Vr. anJ
Vrs. Pamsoy! `
What a groat placo, ` l thought. lt olviously attractoJ
a stoaJy stroam ol rogulars. lrionJs voro rogaling ono
anothor vith tall talos. Tho lig gamo vas on tho lig -
scroon TV. Evoryono vas smiling anJ laughing. Thanks
to ringmastor Boatrico, vo all sonsoJ that vo voro part ol
hor lig shov. lt vas just a rogular vooknight, lut, thanks
to Boatrico, it lolt liko a party.
As my proarrangoJ mooting timo grov closor, l askoJ
Boatrico lor tho tal. Whilo sho vas punching tho rog-
istor, l askoJ hor hov sho coulJ romomlor so many ol
hor rogulars` namos. Sho roplioJ, What makos you think
thoy ` ro rogulars? `
l just assumoJ you alroaJy knov all thoso pooplo, `
l saiJ. \ou all soom so lamiliar vith oach othor. `
Actually, l `vo novor mot any ol thoso pooplo loloro
tonight, ` sho saiJ.
startoJ pouring out ol mo. \ou moan to toll mo that you
knov ovoryono `s namo in this lar? Hov Jo you Jo it?
l can `t ovon romomlor my ovn namo somotimos. Why Jo
you Jo it? What `s his namo? AnJ hor namo? What `s in a
Harvoy Walllangor? What JiJ tho Pamsoys havo to Jrink?
What is tho homo toam ` s rocorJ so lar this soason? `
Amazingly, Boatrico haJ tho right ansvor lor all my
inouirios. Evontually l vas soatoJ vith my party, lut
l coulJn `t stop thinking alout this incroJillo lar managor.
Tvico Juring Jinnor l got up anJ posoJ moro ouostions.
Whon l lolt, l gavo hor my carJ anJ askoJ hor to o - mail
mo. Hors vas a story that nooJoJ tolling.
lt camo as no surpriso to mo to loarn that Boatrico vas
no orJinary larkoop. A lov yoars prior to my oncountor
vith hor, Boatrico haJ caught tho oyo ol corporato man-
agomont in tho chain. Sho locamo an oponor, ` travoling
The Led
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tho country training nov lar stall vhonovor tho groving
chain oponoJ a nov location.
Boatrico onjoyoJ loth tho vork anJ tho travol lor a
timo, lut ovontually camo to roalizo sho roally missoJ tho
camaraJorio ol vorking vith ono group ol stallors ovory
Jay anJ actually sorving tho pullic. Boatrico askoJ thoso
alovo il sho coulJ roturn to a lar managor `s position, anJ
it appoars ovoryloJy has von. lt vas lottor lor mo, it vas
lottor lor tho groving chain, anJ it vas lottor lor Boatrico.
Boatrico ` s loaJors rocognizoJ that sho voulJ lo a
groator assot to tho organization Joing vhat sho vantoJ
to Jo. A lossor group ol managors might havo lorcoJ
hor to stay in tho corporato training position. But Boatrico
is loing loJ, not managoJ.
Our assistant lar managor at tho ltalian rostaurant
anJ Boatrico tho larkoop at tho stoak houso havo osson-
tially tho samo jol. Tho Jilloronco is, Boatrico isn `t alraiJ
ol thoso alovo hor anJ sho Joosn `t viov mo as tho poton-
tial onomy. Tho tvo havo tho samo jol, lut complotoly
Jilloront attituJos anJ thoroloro rosults.
Boatrico glaJly maJo mo a milkshako lor Jossort that
night. (lt vas on tho monu anJ l coulJn `t rosist.) l `m also
villing to lot that il sho haJ caught mo roarranging hor
tallos, sho voulJ havo thankoJ mo lor holping hor as
opposoJ to roprimanJing mo lor customor insulorJination.
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The Led
MIx lt Upl
linJ grovth -oriontoJ inJiviJuals vho vant to lo loJ
anJ loaJ thom. Vanagors hiro anJ try to control: loaJors
inspiro arounJ a goal.
£xtra 7oppIngs
Accept tbat tension is inberent in any organization
a stato ol psychological ooui-
lilrium oltainoJ vhon tonsion or Jrivo has loon roJucoJ
or oliminatoJ. ` Too many tronJy managomont tochniouos
sook to oliminato tho croativo tonsion that is nocossary lor
grovth.
Recognize tbat tbe information age rewards tbinking
-
cioncy. ln toJay `s vorlJ, iJoas garnor tho most valuo.
ciont,
ov ol
human innovation.
Don ' t waste your time managing tbe casb cow
lt shoulJ lo rolativoly oasy to hiro milkors lor vhat vorks
toJay. lt `s a grovth loaJor `s jol to raiso tho calvos vith
tho most potontial lor tomorrov.
( )
SectIon J
Put Purpose 8efore
Proñt
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Vilkshako Vomonts aro most likoly to occur vhon grovth
loaJors concontrato thoir timo, monoy, anJ ollort on culti-
vating a strong sonso ol purposo.
Somo rocont stuJios anJ survoys havo shovn that
approximatoly tvo-thirJs ol Amorican omployoos Jon`t
ts
into tho ovorall purposo ol tho organization. ln my olsor-
vations, this porcontago sounJs rathor lov. That is to say,
at loast 80 porcont ol tho omployoos l oncountor appoar
tho organization`s purposo.
To gaugo tho rolo purposo plays into your organiza-
tion, ask yoursoll thoso ouostions:
Whom is your organization trying to sorvo?
Do tho pooplo in tho organization unJorstanJ vhom
you aro trying to sorvo?
What is your organization trying to accomplish ovor
tho long torm?
What uniouo strongths Joos your organization pos-
soss anJ valuo?
What gots you out ol loJ in tho morning?
What gots your pooplo out ol loJ in tho morning?
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Whilo all ol thoso ouostions aro important, it`s tho
last ono that holJs tho most intorost lor mo. Pooplo caro
alout vhat gots thom out ol loJ in tho morning. Animals
Jon`t caro anJ machinos Jon`t caro. Computors Jon`t
caro. Pooplo Jo. lnstilling pooplo vith a sonso ol purposo
starts vith grovth loaJors. Grovth loaJors sot tho sonso
ol purposo lor thoir organization anJ thon allov it to
pormoato throughout. To lo porcoivoJ as a champion ol
grovth, your jol is to continually roitorato this common
purposo to thoso vho vork vith anJ lor you.
AnJ romomlor, vhilo a sonso ol purposo can mani-
nito numlor ol vays,
thoro is ono consistont maxim on vhich you can roly:
Organizational purposo shoulJ novor lo alout monoy.
Put Purpose ßefore Proñt
Chapter 10
Ìt ' s Never about |oney
Don ` t misunJorstanJ. Vonoy is a groat vay to koop scoro.
Vonoy is tho luol lor oxpansion. Vonoy is an olloctivo
vay to lonchmark anJ rovarJ succoss. lt Joosn `t mattor
il you ` t, a school loarJ, or a Girl
Scout troop. lt takos monoy to lurthor your causo. Vany
sight ol this irrolutallo truth. Tho oxocutivo Jiroctor ol a
chamlor ol commorco onco tolJ mo, t ` is our
tax status . . . it ` s novor our goal. `
Hovovor, ovor tho long haul, monoy alono von `t got
you or anyono olso out ol loJ. ll you `vo lost tho passion
lor vhat you Jo, it Joosn `t mattor hov much you `ro got-
ting paiJ.
You don ' t have to have a lot of passIon for everythIng you
do. but you ' d better have a passIon for everythIng you do
a lot of.
( )
It's Never about honey
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70
ll it `s not alout monoy, vhat is it alout? lor any
organization intorostoJ in roaching anothor lovol, ostal-
lishing a uniouo purposo shoulJ lo tho starting point.
A grovth loaJor shoulJ lo allo to articulato a cloar anJ
conciso statomont ol tho organization `s truo aspirations. lt
must lo unJorstooJ ly all thoso vho sharo an intorost,
lrom omployoos to customors anJ lrom vonJors to sharo-
ts.
Iot mo ask you a ouostion. Othor than somoono you
minJ vhon you roaJ tho vorJ I~:·? Tako a soconJ, closo
your oyos, anJ think ol an inJiviJual tho vorJ conjuros
up in your minJ.
Nov, lot mo ask you a couplo ol ouostions alout
your horo.
lirst, is your horo somoono knovn primarily lor
voalth accumulation? This is a ouostion l `vo askoJ lit-
orally thousanJs ol organizational loaJors ovor tho past
lov yoars. Paroly Jo pooplo namo a rich porson as thoir
horo. Suro, ovory onco in a vhilo somoono vill namo
Bill Gatos, Warron Bullott, or ToJ Turnor as thoir horo.
Hovovor, vhon l Jig a littlo Joopor, tho roason thoy aro
holJ up as horoos is olton lor thoir roputation as philan-
thropists. lnJooJ, thoy `ro knovn lor giving monoy avay
moro than lor accumulating it. Horoos lascinato mo.
MIx lt Upl
t anJ loss stato-
monts aron ` t onough to got ovon accountants out ol loJ.
It's Never about honey
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Chapter 11
The WIzard of Westwood
Whilo lar lrom loing a uniouoly Amorican trait, Amoricans
suro Jo lovo thoir horoos. Wo nooJoJ horoos at our coun-
try ` s lounJing anJ vo `vo kopt sooking thom out ovor
sinco. lrom Goorgo Washington to Eloanor Poosovolt to
Vartin Iuthor King Jr., tho mythology surrounJing our
horoos is Jooply omloJJoJ in our national psycho. At its
coro, our iJoa ol a horo is tho porson vho has honosty,
intogrity, anJ authonticity. Our horoos transconJ thoir
ovn soll - intorost anJ manago to sorvo a groator gooJ.
Whilo l `vo alvays loon lascinatoJ ly tho ovolution
ol tho horo in our culturo, ono ol my groatost lrustrations
guros. l can roaJ
thoir vorJs anJ in somo casos ovon hoar thoir voicos,
lut so many ol my horoos havo lolt this oarth. AnJ vhilo
l havo a lov horoos vho aro still alivo, tho vorlJ has just
locomo so crovJoJ that it is noarly impossillo to moot
guro, much loss a truo horo.
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74
A lov yoars ago, hovovor, l got to moot a horo ol
mino. Thoy call him tho WizarJ ol WostvooJ.
Tho WizarJ vas lorn in southorn lnJiana in 1910.
A gooJ stuJont anJ an ovon lottor athloto, ho holpoJ
loaJ his high school laskotlall toam to a stato cham-
pionship in 192¯. Ho continuoJ his laskotlall caroor
at PurJuo Univorsity, vhoro ho vas namoJ throo timos
to tho All -Amorican toam. ln his sonior yoar, ho loJ tho
Boilormakors to a national championship.
Altor graJuating lrom PurJuo, armoJ vith a lach-
olor ` s Jogroo in English, tho novly marrioJ young
man ontoroJ lnJiana Stato Toachors Collogo, vhoro ho
oarnoJ a mastor `s Jogroo in oJucation. Ho thon locamo
loth a toachor anJ a coach at tho high school lovol in
Kontucky anJ lnJiana until, liko most young mon ol his
timo, ho sorvoJ in tho military altor tho attack on Poarl
Harlor.
A lov yoars altor tho var, tho WizarJ vas invitoJ ly
lnJiana Stato Toachors Collogo (nov calloJ lnJiana Stato
Univorsity) to sorvo as athlotic Jiroctor anJ hoaJ laskot-
lall coach. His laskotlall toam `s tvo -yoar 4¯ anJ 14 von -
lost rocorJ oarnoJ him national rocognition. Soon tho lig
schools voro courting tho coach, anJ ho ovontually got
hitchoJ vith tho Univorsity ol Calilornia -Ios Angolos at
its WostvooJ campus. That vas vhon tho magic startoJ
lor tho WizarJ.
At UCIA, this man namoJ John WooJon locamo a
laskotlall logonJ:
Ton national championships.
Tvonty - c - 10 championships.
lour porloct 30 - 0 soasons.
An unprocoJontoJ 88 -gamo vinning stroak.
Thoro`s no ouostion that ho vas tho groatost collogo
laskotlall coach in history. lor many, incluJing mysoll,
ho vas tho groatost coach in Amorican sports history,
porioJ (vith all Juo rospoct to my lrionJs in loth Groon
Bay anJ Alalama, vho rocontly loooJ this pronounco-
mont in a gooJ -naturoJ vay). lt Joosn `t mattor il you
knov laskotlall -or ovon sports in gonoral, lor that mat-
tor. Tho point horo is that as a young man, l grov up
vith a lovo ol tho gamo ol laskotlall, anJ Coach WooJon
omloJioJ all that vas gooJ alout tho gamo. ln a vorJ,
ho vas my horo.
ln Varch ol 2005, l got to moot tho WizarJ.
Coach WooJon vas tho koynoto spoakor at a conlor-
onco l vas attonJing. As somoono vho spoaks at ovor
100 gonoral sossions a yoar, l normally stay closo to tho
oxits vhon l `m not onstago. But on this Jay l plannoJ to
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75
76
lo lront anJ contor. WooJon vas to spoak at lunch, anJ
that morning l askoJ tho conloronco Jiroctor il it voulJ
lo possillo lor mo to moot tho coach. l spont a lull hour
vith Coach WooJon loloro anJ again altor ho spoko to
an auJionco ol ovor 1,000 pooplo. Tho oxporionco lar
oxcooJoJ my oxpoctations.
Coach vas 95 yoars young. Whilo ho haJ lost a lov
stops physically (ho valkoJ vith a cano anJ sat in a chair
onstago), ho haJ not lost ono stop montally. Ho vas as
sharp at 95 as most ol us aro at 35. lt vas incroJillo to
vatch this slight, solt -spokon man holJ tho auJionco in
tho palm ol his hanJ. lor ovor an hour ho ongrossoJ mo
anJ ovoryono olso assomlloJ vith talos rolating to ono ` s
unJorlying sonso ol purposo. Ho vas tho lurthost thing
lrom a motivational spoakor, yot no ono coulJ havo lolt
thoro vithout looling gonuinoly inspiroJ.
l honostly Jon `t romomlor oxactly vhat Coach saiJ to
mo ono - on - ono vorsus thoso things ho saiJ vhilo onstago.
What l Jo knov is that my horo lolt mo vith tvo lossons
l ` rst vas this: Ho saiJ, l novor sot
out to vin championships. l alvays knov that l vantoJ to
holp young pooplo achiovo loyonJ thoir ovn oxpocta-
tions ol thomsolvos. Championships voro a ly -proJuct ol
that ollort. `
l lator loarnoJ that ol tho hunJroJs ol playors tho
WizarJ haJ coachoJ throughout his caroor, ho has lost
77
track ol only a hanJlul. Ask him alout somo ol his
lavoritos anJ thoy `ro alvays tho unhoralJoJ playors vho
vont on to accomplish groat things in thoir livos. Coach
vas a coach in tho groatost sonso ol tho vorJ. Ho caroJ
ing alout him. lt `s an amazing oxporionco vhon your
horoos livo up to your oxpoctations ol thom.
Tho soconJ losson l loarnoJ that Jay l `m going to
savo lor lator. Just knov that my horo novor Jisappoints,
anJ his lossons aro vorth vaiting lor.
MIx lt Upl
locus on a vorthy purposo. lt is tho only vay you vill
consistontly vin in tho gamo ol grovth.
Chapter 12
Proñt Pushers
lor most ol my lilo l `vo loon involvoJ in music. l sang
soon moro lanJs than l caro to romomlor. Whilo novor
my roal jol, it has alvays loon alout as strong an avo-
cation as ono can imagino. Somohov, liko an aJJictivo
Jrug, it vas somothing l just coulJn ` t givo up.
Call it a miJlilo crisis or a caso ol Potor Pan syn-
Jromo, lut somohov l lounJ mysoll onco again lronting
rock lanJs lrom tho miJ - 1990s until just a lov yoars ago.
lt vill prolally como as no shock to you that illicit
Jrugs aro a part ol tho rock anJ roll vorlJ. ln my youth,
l maJo a Joal vith mysoll that tho music voulJ lo moro
important to mo than tho party. l choso to alstain, lut
tho sulstancos voro alvays arounJ mo.
l coulJn `t holp lut notico tho changos in thoso sul-
stancos ovor tho yoars. ln my youth, Jrugs ` voro mys-
torious concoctions packagoJ in littlo cloar plastic lags
Proñt Pushers
79
80
anJ in aluminum loil that haJ loon lolJoJ ono too many
timos. By tho 1990s thoso typos ol stroot Jrugs voro no
longor in voguo. Evoryvhoro l lookoJ, l sav proscription
lottlos anJ lranJoJ tallots. Tho nov high haJ locomo
logitimatoly manulacturoJ sulstancos usoJ in an illogiti-
mato vay.
OxyContin vhilo sitting in a clul vaiting to tako tho
stago. OxyContin? ls that a nov lranJ ol BanJ - AiJs? `
l vonJoroJ alouJ. l soon camo to loarn that this synthotic
opiato vas a ticking timo loml roaJy to oxploJo.
Within months ol having hoarJ ol tho Jrug anJ loarn-
ing ol tho tragoJios lolt in its vako, l mot tho ovnor ol
tvo mothaJono clinics in tho Southoast. Ho oxplainoJ to
mo that his lusinoss vas no longor thoro to holp intra-
vonous Jrug usors: 80 porcont ol his clionts voro nov
aJJictoJ to synthotic opiatos, vith OxyContin at tho top
ol tho list. Wo nov knov that this phonomonon vas
playing out in communitios throughout tho UnitoJ Statos.
What startoJ out as a rural Appalachian scourgo ouickly
movoJ to sulurls across tho country.
What happons vhon an inJiviJual or organization is
in it only lor tho monoy anJ losos sight ol tho groator
purposo? Porhaps ono Jay Vichaol lrioJman, HovarJ P.
UJoll, anJ Dr. Paul D. GolJonhoim can toll us all.
Thoso throo mon aro tho lormor oxocutivos ol PurJuo
Pharma, makor ol this highly aJJictivo Jrug OxyContin,
an ovorproscriloJ painkillor that has JocimatoJ count-
loss lamilios anJ communitios in tho UnitoJ Statos. ln
200¯, thoso throo oxocutivos ploaJoJ guilty to misloaJing
noJ $634 million lor intontionally
unJorstating tho Jrug `s aJJictivo proportios. (Tho com-
pany paiJ $600 million, vhilo tho oxocutivos thomsolvos
aro on tho hook lor tho rost.) Thoy voro also sontoncoJ
to 400 hours oach ol community sorvico.
A Poanoko, Virginia, novspapor hoaJlino roaJ,
Hilllilly Horoin `s Pushors Escapo Prison. ` Porhaps ono
Jay l `ll como to unJorstanJ tho stupiJ systom that allovs
thoso guys to valk, vhilo thousanJs ol Amoricans aro
lockoJ up lor yoars in our nation `s prisons on simplo
possossion chargos, vith no intont to lo pushors. But
that ` s an issuo lor anothor Jay. Iot `s got lack to PurJuo
Pharma.
Thoro vas lig monoy to lo maJo pushing thoso littlo
pills, anJ it vas PurJuo Pharma `s ono -trick pony. AccorJing
to tho N~u î·:Þ T:u~:, at ono point tho Jrug maJo up 90
porcont ol tho company `s salos, vith ovor 6.5 million pro-
scriptions vritton a yoar. By 2001, rovonuos stooJ at $1.5
lillion Jospito mounting avaronoss ol tho prollom arounJ
haJ thoir salos lorco lio to Joctors, anJ ropoatoJly claimoJ
Proñt Pushers
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82
in tho moJia that tho vonJorlul thing alout this Jrug vas
that pationts voulJn ` t got hookoJ on it.
yoars loloro that thoir lalso claims voro a joko. Back
surgory pationts, altor throo months ol taking Joctor -
proscriloJ OxyContin, voro pavning thoir valuallos to
looJ thoir halits. Toonagors voro holJing up pharma-
cios anJ stoaling only tho OxyContin, loaving tho cash
anJ othor morchanJiso lohinJ. Emorgoncy room visits
rolatoJ to proscriptivo painkillors triploJ vithin six yoars
ol tho Jrug `s introJuction. A national survoy lounJ that
9¯5,000 pooplo roportoJ using OxyContin lor nonmoJical
tho company `s ovn salospooplo voro sounJing varning
alarms alout vhat vas happoning.
l ` m no Joctor, lut it is an opiato, right? Hov coulJ
thoy koop Jonying it vas aJJictivo? Hov coulJ thoso
guys got out ol loJ anJ look thomsolvos in tho mirror
ovory Jay?
What vas PurJuo Pharma `s purposo? Was it to pro-
moto hoalth anJ hoaling, ` or vas it to rako in as much
cash as possillo, as ouickly as possillo? Unliko Enron or
WorlJCom, thoso oxocutivos coulJn `t pin tho llamo on
somo imponotrallo accounting practicos or somo roguo
miJJlo managors. lt vas criminal olluscation ol tho high-
ost orJor. Thoso oxocutivos knov thoir cash cov vas
83
Proñt Pushers
highly aJJictivo anJ continuoJ to toll ovoryono oxactly
tho opposito. Thoy JiJ vhatovor voulJ koop tho monoy
rolling in.
PurJuo Pharma vas lounJoJ in tho 1890s ly voll -
tally proJuco
salo anJ olloctivo pain roliovors, a nollo purposo ly any
moasuro. Hov JiJ tho organization manago to stray so lar
lrom its original roason lor loing?
Somo say monoy is tho root ol all ovil. l Jon `t knov il
that ` s truo, lut l `m suro that `s hov this organization lost its
vay. Thoro vas nothing inhorontly ovil alout this moJical
compounJ. Whon usoJ proporly, it is a salo anJ olloctivo
pain roliovor. But thoso pushors voron `t happy vith a sus-
tainallo $100 million or $200 million nicho Jrug lor thoso
sulloring lrom intonso short -torm pain. Thoy lioJ lor yoars
in orJor to mako moro monoy, moro ouickly. Thoy JiJn `t
simply loso sight ol thoir purposo: thoy consciously por-
vortoJ it, anJ millions sulloroJ as a rosult.
MIx lt Upl
Alvays Jo tho right thing. lt `s not just an othical impora-
tivo: it ` s tho cloarost path lor sustainoJ grovth.
Chapter 1J
NoClu |otors. Ìnc.
Thoro aro timos vhon laJ pooplo consciously Jo laJ
things in organizations. Voro olton, gooJ pooplo vith tho
lost ol intontions loso sight ol thoir purposo anJ Jon ` t
ghting toJay ` s
lattlo that thoy lorgot tho ovorall oljoctivos. Tho oxocu-
tivos at PurJuo Pharma voro outright criminals. Tho only
thing criminal alout this noxt story is tho souanJoring ol
a roal opportunity.
lor JocaJos tho UnitoJ Statos has loon tho most
povorlul oconomic lorco in tho vorlJ. ln tho oarly 1950s,
vith tho rost ol tho vorlJ JocimatoJ ly WorlJ War ll, tho
UnitoJ Statos roprosontoJ ovor hall tho vorlJ `s output ol
gooJs anJ sorvicos. lrom structural stool to chilJron `s car-
toons, tho UnitoJ Statos vas tho unJisputoJ king ol com-
morco. Argually our groatost sourco ol national priJo vas
tho Amorican automolilo inJustry. By tho 19¯0s it haJ
consoliJatoJ into vhat locamo knovn as tho Big Throo,
a triumvirato that ruloJ tho Jomostic markot until a stoaJy
Joclino turnoJ into a moltJovn ovor tho past JocaJo.
NoCIu hotors, Inc.
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86
Somovhoro along tho lino tho rost ol tho vorlJ appar-
ontly rotooloJ. Tho Gormans, tho Japanoso, tho SvoJos,
anJ lator ovon tho Koroans got in on tho gamo. Dospito
our continuoJ oconomic suporiority, tho Big Throo havo
como to symlolizo our nation `s lack ol oconomic invinci-
lility. Somo roally smart pooplo havo trioJ a lot ol soom-
ingly smart things, yot tho only lig thing alout tho Big
Throo ovor tho past 25 yoars has loon tho sizo ol thoir
Joclino in markot sharo. ln 1999 tho Big Throo haJ a
¯1 porcont markot sharo in tho UnitoJ Statos. By 2005 that
sharo haJ JroppoJ to 58 porcont, anJ ly August 200¯ loss
than hall ol tho automolilos solJ in tho UnitoJ Statos voro
lrom ono ol tho Big Throo.
Amorica ` s Joclining automotivo inJustry is a protty
touchy suljoct. Thoro aro unJoultoJly a lot ol roasons
lor it, anJ l `
on it -romomlor l `m a ¤:·uII oxport. \ot lasoJ on my
rocont oxporionco vith ono ol thoso Big Throo compa-
nios, l havo como to lottor unJorstanJ thoir proJicamont.
Not too long ago, ono ol tho Big Throo (vo `ll call
it NoClu Votors), invitoJ mo to holp grov ono ol thoir
Jivisions. Evontually l vas askoJ to visit tho NoClu
hoaJouartors.
Evorything lookoJ groat. All tho culiclos appoaroJ to
havo a logical layout anJ thoro vas a ouiot, stoaJy hum
to tho placo. l `m still not suro il that hum vas coming
uoroscont tulos ovorhoaJ.
l Jo Jistinctly romomlor that tho corporato calotoria vas
particularly voll appointoJ.
- ol - tho - art
loarJroom vith a hanJlul ol Jiroctor -lovol oxocutivos vho
avoragoJ 20 yoars in tho NoClu lolJ. l vas ouito prouJ
ol tho olsorvations anJ rocommonJations l haJ JovolopoJ
c, action-
allo, anJ voll supportoJ ly loth intornal anJ oxtornal
Jata l haJ acouiroJ.
On Jay ono, it vas cloar that my iJoas voro loing
voll rocoivoJ. At tho onJ ol tho Jay, l askoJ tho toam lor
a lov piocos ol missing Jata, anJ vo all agrooJ to rocon-
vono in tho samo loarJroom tho lolloving morning to
put our groat nov plan in motion.
Day tvo vas tho loginning ol tho onJ ol our rolation-
ship. Vy rocommonJations rogarJing salos lorco compon-
sation plans, markoting initiativos, anJ vortical intogration
ol inJustry c proJuct loaturos voro shot Jovn
At NoClu, miJJlo managors apparontly still play tho
riJiculous gamo ol loat tho lossos to vork. ` l rolloJ in
at tho proviously appointoJ timo ol 9:00 A.V. lolioving
NoCIu hotors, Inc.
87
88
that vo voro roaJy to roll up our sloovos anJ got somo
roal vork Jono. Iittlo JiJ l knov that a couplo ol hours
prior to my arrival, inlormal prosontations haJ alroaJy
loon givon intornally anJ tho lig loys upstairs ` haJ
alroaJy put tho kilosh on our ologant nov stratogy.
Somohov my loarloss group ol gung -ho go - gottors
haJ como Jovn vith a Jolilitating strain ol tho common
corporato virus knovn as II~)u·uII~Iu:, a Iatin vorJ that
can lo loosoly translatoJ as l havo a soconJ mortgago
anJ a collogo - lounJ kiJ vho nooJs lracos. `
Thoso samo pooplo, vho just tho provious Jay haJ loon
invigoratoJ ly tho opportunitios allorJoJ through chango,
voro nov snoozing anJ coughing lack at mo. l hoarJ noth-
ing lut anomic oxcusos as to vhy nono ol thoso iJoas coulJ
vork in practico. NoloJy haJ tho strongth to stanJ up anJ
say, `s luilJ a sys-
tom to moot it. ` lnstoaJ thoy voro stymioJ ly a porcoivoJ
inalility to shoohorn our plans lor grovth into thoir oxisting
structuro. BosiJos, tho highor - ups alvays knov lost.
lt vas so Jishoartoning. lt is not ovorstating it to say
that it lolt as il l vas talking to tho loaJors ol a communist -
run cooporativo. Ultimatoly, thoir only concorn vas kooping
tho proJuction monstor loJ. Evorything vas alout units ol
throughput, organizational hiorarchy, anJ playing it salo.
89
NoCIu hotors, Inc.
AccorJing to NoClu `s annual roport that yoar, its
Jriving purposo incluJoJ comploto customor satislaction,
oporational oxcollonco, innovativo Josign, anJ suporior
ouality, all achiovoJ through tho povor ol toamvork.
Ultimatoly, thoso voro just vorJs on a pago. This toam
haJ no intontion vhatsoovor ol mooting thoir organ-
ization ` s statoJ purposo. By tho onJ ol Jay tvo, l haJ
roJ mysoll.
Hov saJ. A group ol votoran culiclo Jvollors haJ
actually soon tho light ol nov opportunity. Thoy haJ all
tho right ingroJionts, lut thoy voron `t villing to risk a
Vilkshako Vomont.
MIx lt Upl
lJontily your most optimal opportunitios anJ thon structuro
your organization arounJ thom. Pocognizo that vhon an
organization logins to look lor roasons vhy thoy can `t Jo
somothing, thoy actually start tho sliJo tovarJ not Joing
anything.
Chapter 14
Purpose In the Plan
ln 2002, tho Vancouvor, CanaJa, BoarJ ol TraJo vas having
a tough timo. Vomlorship in tho chamlor ol commorco- liko
organization haJ loon lalling ovor so slightly lor yoars anJ
nov sat at just 4,000 momlors. Iiko a lot ol community-
lasoJ organizations, it vas ûghting a tronJ ol gonoral
Jisongagomont.
Vany lolt that lor tho BoarJ ol TraJo to simply stop
its llooJing voulJ havo loon ouito an accomplishmont,
lut nov Vanaging Diroctor Darcy Pozac lolt this vasn ` t
gooJ onough. Ho aimoJ to grov. His toam JociJoJ that
tho antiJoto to Jisongagomont vas ongagomont. Thoy
JociJoJ to stross tho association `s rolo in tho ossontial
skill ol Jovoloping rolationships. This vas a rathor novol
approach sinco most traJo associations tonJ to trumpot
thoir valuo in lostoring rolorrals -tho traJitional transac-
tional notvorking approach.
Pozac ` s toam usoJ a collalorativo approach that
involvoJ tho loarJ, stallors, momlors, anJ ovon outsiJo
Purpose In the PIan
91
92
lacilitators. Thoy locusoJ on throo koy vorJs: ongago-
mont, valuo, anJ sorvico. Thoir purposo vas to grov
momlorship ly proving tho valuo ol tho organization to
tho Vancouvor community ovorall. Thoy iJontiûoJ throo
goals that voulJ sorvo this purposo. Thoir goals voro
ouantiûallo, lolJ, anJ roalistic.
1. lncroaso momlorship lrom 4,000 to 5,000 momlors
vithin throo yoars, vith long -torm rotontion ol 92
porcont.
2. lmpact policy changos such as spociûc lusinoss -
proporty tax roJuctions, stroamlinoJ lorJor - accoss
procoJuros, a lalancoJ provincial luJgot, anJ a push
lor loJoral sponJing on Jomostic grovth initiativos.
3. Iaunch anJ support highly visillo community
campaigns. Thoso incluJoJ a Spirit ol Vancouvor cam-
paign, a Symphony in tho Park ovont, anJ trying to
lring tho 2010 Wintor Olympics to Vancouvor.
DiJ thoir plan vork? \os, it JiJ, anJ in a lig vay. Tho
Vancouvor BoarJ ol TraJo von tho Amorican Chamlor
ol Commorco Exocutivos ` 2005 AvarJ lor Excollonco. By
200¯, momlorship rovonuos voro up moro than 50 por-
cont, long -torm momlor rotontion haJ improvoJ to a
rocorJ 95 porcont, anJ momlorship haJ approachoJ 5,000
lor tho ûrst timo.
Tho Spirit campaign anJ tho Symphony in tho Park
program voro succosslully launchoJ anJ Vancouvor vas
avarJoJ tho 2010 Wintor Olympic Gamos. To tho casual
olsorvor, it prolally all lookoJ liko magic. Ol courso
it vasn `t, though. All this succoss camo out ol having a
strong sonso ol purposo that JovotailoJ vith an amlitious
lut roalistic plan lor grovth.
MIx lt Upl
Bo suro your purposo -Jrivon plan is vritton, voll commu-
nicatoJ, anJ, as circumstancos Jictato, rogularly upJatoJ.
ConsiJor tho vorJs ol ProsiJont Dvight Eisonhovor, vho
onco saiJ, Plans aro usoloss, lut planning is inJisponsallo. `
Purpose In the PIan
93
Chapter 15
You Cotta Serve Somebody
During tho ûrst hall ol tho tvontioth contury, Dr. Wosloy
Wilkorson vas an oyo, oar, noso, anJ throat spocialist
practicing in Nashvillo, Tonnossoo. Throughout his oarly
caroor, Dr. Wilkorson vas lrustratoJ ly tho lack ol spo-
cializoJ sorvicos lor tho hoaring -impairoJ chilJron ho
troatoJ in his community. Ho vas ospocially concornoJ
alout tho lack ol skilloJ intorvontion at a young ago to
holp thoso chilJron vith thoir communication skills lator
in lilo. Ho sav an important nooJ, anJ ly tho 1930s ho
haJ takon it upon himsoll to ûll it.
Somotimo altor Christmas 1944, Dr. Wilkorson `s only
son Bill also sav an important nooJ anJ ûlloJ it. Olûcors
askoJ lor voluntoors lor tho Jangorous jol ol lorvarJ
olsorvor at tho hoight ol tho Battlo ol tho Bulgo, Hitlor ` s
last - gasp attompt to turn tho tiJo ol WorlJ War ll. Voro
than 500,000 young Amorican mon lought in that lour -
vook lattlo, anJ ovor 80,000 casualtios voro sustainoJ -
tho llooJiost lattlo ol tho ontiro var. Bill raisoJ his hanJ
to holp his country ono Jay anJ paiJ tho ultimato prico.
Ho vas only 19 yoars olJ.
95
96
By 1949, Dr. Wilkorson haJ campaignoJ anJ cajoloJ
onough support to lorm tho Tonnossoo Hoaring anJ
Spooch lounJation. Tvo yoars lator, tho lounJation ` s
loarJ ol Jiroctors agrooJ to opon a caro clinic in an
olJ VanJorlilt Univorsity lratornity houso. Altor asking
Dr. Wilkorson to loavo tho room, tho loarJ also unani-
mously votoJ to namo tho nov lacility tho Bill Wilkorson
Hoaring anJ Spooch Contor, in honor ol tho lallon horo.
As tho lathor ol a toonago loy, l `m guossing tho
holo in Dr. Wilkorson hoart vas too lig to ovor lo ûlloJ
complotoly. Nonotholoss, tho loarJ sav a couplo ol roal
nooJs that Jay anJ sought to ûll thom. lt must havo loon
a prouJ momont lor tho gooJ Joctor anJ his lamily.
ln 19¯8, Dr. lroJ Boss locamo Jiroctor ol tho oxpanJ-
ing Bill Wilkorson Contor. By tho miJ -1990s, unJor his guiJ-
anco, it haJ grovn to a stall ol 80 JoJicatoJ prolossionals
sorving somo 4,000 pationts. Iiko any gooJ grovth loaJor
voulJ havo, Dr. Boss logan to sonso that tho JomanJs
ol tho community voro incroasing loyonJ tho lacility ` s
capacity. Ho sav a nooJ anJ lookoJ to ûll it. Ho sought,
along vith tho loarJ, to morgo tho privato clinic vith tho
VanJorlilt VoJical Contor. ln 199¯, tho VanJorlilt Bill
Wilkorson Contor lor Otolaryngology anJ Communication
Scioncos vas lormoJ.
Sinco tho morgor, tho Contor has JoulloJ in sizo anJ
scopo. Eight thousanJ pationts a yoar aro holpoJ ly a stall
97
ol ovor 150 vorking across ûvo Jilloront Jopartmonts,
vhoso sorvicos nov rango lrom holping proschoolors vith
communication JisorJors to aiJing soniors vith hoaring
loss. ¹· N~u: ô W·:Iu R~j·:I ratoJ tho graJuato program
in auJiology numlor ono in tho country. Tho community
koops coming to tho Contor vith its nooJs, anJ tho Contor
grovs ly ûlling thoso nooJs.
l ûrst locamo lamiliar vith tho Contor anJ its impor-
tant vork altor mooting Iucy, tho ûvo - yoar - olJ Jaughtor ol
lrionJs. Sho haJ rocontly loon JiagnosoJ vith a lorm
ol autism. Sho is a svoot anJ lunny anJ loving chilJ, lut
vas unallo to spoak. This vas prolounJly lrustrating lor
hor paronts anJ ovon moro so lor Iucy.
Altor only a lov months ol vorking vith a Contor
spocialist, Jramatic improvomonts lor Iucy voro olvious
to ovon this untrainoJ olsorvor. Sho ouickly mastoroJ a
talkor, an oloctronic gizmo alout tho sizo ol a laptop that
sho prossos to put togothor complox thoughts. l locamo
tho lutt ol moro than ono ol hor talkor jokos (such as
l think you a crazy ` altor vatching mo unsuccosslully try
to uso tho complox contraption).
A lov vooks lator, Iucy logan to vocalizo actual
vorJs. lor hor paronts, it vas a momont thoy haJ loaroJ
might novor como. l can only imagino thoir olation at
hoaring thoso ûrst halting lut oasily unJorstooJ vorJs:
B - oo - k. C - a - t. V - om - my. D - aJ - Jy. ` Iucy `s paronts haJ
98
anJ vill continuo to havo a truo nooJ, anJ tho Contor is
thoro to ûll it.
No mattor vhat your organization onJoavors to
achiovo, tho lossons ol tho VanJorlilt Bill Wilkorson
Contor apply to you.
The purpose of any organIzatIon Is to IdentIfy and ñll
the relevant needs of those It serves.
As a rosult ol purposo -Jrivon loaJorship, tho Contor
stanJs as ono shining oxamplo ol hov organizational
grovth happons. lt logins, anJ is sulsoouontly propolloJ
ly, vhat Holon Kollor onco calloJ ûJolity to a vorthy
purposo. `
Dr. Wilkorson novor gavo up on a nooJ ho iJontiûoJ
as critical to tho community ho sorvoJ. Tho loarJ haJ an
inspiroJ, purposolul start anJ guiJoJ tho Bill Wilkorson
Contor through JocaJos ol chango anJ progross. Dr. Boss
coulJ havo oasily soon a morgor vith a largor institu-
tion as a throat to tho autonomy tho privato lacility haJ
alvays onjoyoJ. lnstoaJ, risking ovon his ovn jol, ho
pushoJ lor tho union that provoJ to lo tho right call lor
oxpanJoJ pationt caro. Iator, vo vill loarn ovon moro
alout Dr. Boss anJ his provon loaJorship skills.
( )
l am looking lorvarJ to tho Jay vhon l can toll an
olJor Iucy tho story ol young Bill Wilkorson anJ his soll-
loss sacriûco. l am anticipating sho vill rosponJ vith a
porloctly onunciatoJ GooJ story, Stovo . . . lut you aro
still lull ol p - oo - p. `
MIx lt Upl
linJ vays to koop tho nooJs ol thoso you sorvo at tho
top ol ovoryono `s priority list. ll an action itom Joosn ` t
Jiroctly rolato to this, ouostion vhy it ` s an itom at all.
£xtra 7oppIngs
Reconñrm tbat your organization bas a unique purpose
ll you Jon `t havo a uniouo purposo, l suggost you cro-
ato ono ASAP. ll you Jo havo ono, thon lo suro it is truly
uniouo, croJillo, anJ capallo ol gotting pooplo out ol
loJ in tho morning.
FrequentIy articuIate your organization ' s
stated purpose
ln tho hoat ol lattlo, it `s oasy lor troops to loso sight
ol vhat thoy aro ûghting lor. lt `s tho jol ol a loaJor to
rominJ ovoryono that thoir strugglo sorvos a highor call-
ing. To that onJ, your uniouo purposo shoulJ lo loth
cloar anJ conciso.
99
( )
100
Stand up and make a difference
Going along to got along ` is no vay to grov. Do tho
right thing, ovon vhon tho stupiJ systoms appoar to lo
stackoJ against you.
SectIon 4
Ìnsource CrucIal
Judgment
( )
102
Vuch has loon vritton anJ JiscussoJ rogarJing tho out-
sourcing movomont taking placo in toJay`s organizations.
lor many, tho vorJ ·uI:·u:c~ conjuros up an imago ol a
tolovorkor in a Jovoloping nation struggling to sounJ
authontic in a soconJ languago. lor othors, tho iJoa is a log-
ical, cost-saving moasuro that holps onsuro glolal compoti-
tivonoss. l supposo loth notions aro lasoJ on roality.
lor mo, thoro is no right or vrong vhon it comos
to outsourcing. Outsourcing a payroll lunction to payroll
oxports, lor instanco, has maJo sonso lor many organiza-
tions lor yoars. ll it mako sonso to outsourco a payroll
procoss Jomostically, can`t it also lo possillo to Jo it
vith a loroign proviJor?
Toyota`s highly succosslul Ioxus lranJ routinoly out-
sourcos vohiclo Josign in its rolontloss pursuit ol porloc-
tion,` lut consciously insourcos` tho assomlly procoss. l`m
loss concornoJ vith outsourcing than l am vith insourc-
ing. Whonovor an organizational loaJor consciously JociJos
vhich crucial juJgmonts shoulJ lo kopt intornal, that`s
insourcing.
ToJay`s grovth loaJors hono thoir juJgmont skills vhon
JociJing vhat to koop in anJ vhat to sonJ out. Ultimatoly,
this honing ol juJgmont loaJs to visJom. IoaJors also tap
into tho colloctivo visJom ol thoso vho vork vith anJ lor
thom in orJor to luilJ organizations that aro positionoJ to
Chapter 16
EdIcts |ade on HIgh
EvoryloJy sooms to knov vhat tho torm cuIcI - 22 moans.
Whilo thoy may not knov its Jorivation, thoy unJorstanJ
it to lo a circular, conuicting sot ol rulos JosconJing lrom
a namoloss, lacoloss luroaucracy. Anyono vho has spont
any timo in any organization ol any sizo has oxporioncoJ
tho phonomonon.
Josoph Hollor `s ·uIcI - 22 vas pullishoJ in 1961 anJ
has como to Joûno our unJorstanJing that organizations
aro olton alsurJ, ospocially lor tho inJiviJual caught in an
organization ` s cogs. Tho nov -classic novol is sot in tho van-
ing Jays ol WorlJ War ll anJ illustratos tho concopt ol circu-
lar logic. ln an attompt to lo oxcusoJ lrom Jangorous Juty,
a lomlarJior sooks to got a Joctor `s Jiagnosis that ho is
insano. \ot rogulations assumo that only a sano porson voulJ
rocognizo tho inhoront Jangor ol tho mission. By roouosting
loavo lrom Juty on tho grounJs ol insanity, tho lomlarJior
actually provos that ho is sano anJ thoroloro ût to uy.
Whilo you may not lo Joaling vith lilo anJ Joath
anJ ouostions ol sanity vorsus insanity, vo all rocognizo
EdIcts hade on HIgh
103
104
tho no -vin situation (JamnoJ il l Jo, JamnoJ il l Jon ` t)
paraJox. lor most ol us, it starts in school. lor instanco,
in orJor to gain aJmission to a lottor collogo, vo nooJ to
havo gooJ graJos anJ strong participation in oxtracurric-
ular activitios. \ot loing in tho marching lanJ anJ choss
clul actually takos timo avay lrom our stuJios.
Onco vo aro uung out ol our oJucational systoms, vo
laco tho ooually porploxing \ou must havo oxporionco to got
a jol, lut you can ` t got a jol vithout oxporionco ` Jilomma.
Onco you got that ûrst jol, it only locomos vorso. l can
romomlor tho ûrst timo l oxporioncoJ it as a young managor
in aJvortising. l vas askoJ Juring a porioJ ol Jovnsizing to
ûro ono ol tho throo youngor pooplo roporting to mo. Tvo
ol thoso young pooplo voro all -stars, vhilo ono vas laroly
making it. \ot vo ûroJ ono ol tho all -stars locauso tho lag-
garJ haJ cost tho organization moro monoy. \ou soo, noithor
ol tho all -stars haJ an aJvancoJ Jogroo, vhilo tho laggarJ
possossoJ a mastor `s Jogroo. Thoro haJ loon a hiring lonus,
a sulstantial invostmont in training, anJ an oxtra $10,000 a
yoar in salary.
Tho organization haJ too much invostoJ in tho unJor-
porlormor. Vanagors many lovols alovo mo haJ to mako it
vork in orJor to savo laco. Dospito my lost ollorts, l vas
lacoJ vith tho moral ouanJary ol ûring an ovorachiovor in
orJor to koop an unJorachiovor. Within six months, l vas
out ol aJvortising lorovor.
Just rocontly, l maJo a rosorvation to stay at a Disnoy
proporty in OrlanJo, lloriJa. l haJ loon askoJ to spoak
at an ovont, anJ this hotol vas porloctly locatoJ lor mo. l
calloJ tho systomviJo rosorvation numlor anJ vas assistoJ
ly a gontloman vho coulJ not havo loon moro ploasant.
Evorything vont svimmingly until tho vory onJ. l maJo
vhat l thought to lo a vory simplo roouost: CoulJ you
sonJ mo a conûrmation ly o - mail, ploaso? `
That roouost vas grootoJ vith, l ` m sorry, sir, vo Jon `t
o - mail conûrmations anymoro. Wo vill, hovovor, lo mail-
ing you all tho inlormation you nooJ vory soon. `
Vailing a conûrmation prolally vorks lor most ol tho
company ` s hotol `s customors. Hovovor, it vas poak lusi-
noss travol soason lor mo. l voulJn `t lo anyvhoro noar my
maillox in orJor to intorcopt tho papor - lasoJ conûrmation.
l oxplainoJ to tho choory cast momlor ` that l roally
nooJoJ tho conûrmation o -mailoJ locauso l vas on tho roaJ.
Tho Cast Vomlor roplioJ that locauso customors tonJoJ to
loso thoir o -mail conûrmations Juo to spam ûltors anJ opora-
tor orror, ho vas no longor authorizoJ to o -mail tho inlorma-
tion. lt vas lor my ovn gooJ.
Ton minutos lator l vas still trying to oxplain that
l somovhat unJorstooJ his argumont. Hovovor, ho roally
nooJoJ to unJorstanJ mino. Tho Disnoy hotol proportios
usoJ to o -mail conûrmations, anJ ovory othor hotol chain
EdIcts hade on HIgh
105
106
l Jo lusinoss vith can sonJ mo an o -mail conûrmation.
Also, sonJing it ly o -mail voulJ havo roprosontoJ an
incromontal cost to Disnoy ol zippo. Zilch. NaJa!
Throughout our gooJ -naturoJ lack - anJ - lorth, l coulJn `t
holp lut think to mysoll, Hoy, Gooly, you can snail - mail
tho Jamn thing anyvhoro you vant. Just sonJ mo an
o - mail, too! `
Tho Disnoy lranJ is synonymous vith sorvico. Anyono
vho has stayoJ at ono ol its hotols or visitoJ ono ol its parks
knovs that noloJy Joos tho Jotails lottor. Hovovor,
in this instanco, l novor JiJ got tho o -mail conûrma-
tion l roouostoJ. (l JiJ ûnJ tho snail -mail conûrmation
stackoJ on my Josk a couplo ol vooks altor my stay.)
l vas so intriguoJ ly this pointloss policy that l coulJn `t
lot it go.
Altor numorous phono calls to tho organization trying
to lottor unJorstanJ it all, l ovontually onJoJ up vith a
particularly porky PP porson at hoaJouartors in Anahoim,
Calilornia. Tho circular naturo ol our convorsation voulJ
havo no Joult lrought a smilo to Josoph Hollor `s laco.
l haJ hit tho luroaucratic vall.
To this Jay, l Jon `t think sho complotoly loliovoJ vhat
sho vas tolling mo. Sho JiJ, hovovor, loliovo in Disnoy `s
inlallilility. lt vas as il sho voro saying, l Jon `t knov
vhothor it makos sonso. What l Jo knov is tho Houso ol
107
EdIcts hade on HIgh
Vouso has JocrooJ it, anJ thoroloro, ly Joûnition, it is
corroct.`
Any attompts at logic (such as l `m on tho roaJ right
nov anJ von `t lo homo in timo to got it, l knov you
usoJ to Jo it, it von `t cost you anything oxtra to Jo it,
all othor hotols can Jo it) voro mot vith tho cannoJ
rosponso, \os, lut l vas tolJ that pooplo loso thom. lt ` s
roally lottor lor you il vo mail it. ` Evontually l gavo up.
ln my ûrst look l JoscriloJ a vory similar situa-
tion vith my carrior ol choico, Dolta Air Iinos. Whilo tho
markoting Jopartmont vas allo to sonJ mo o -mails on
a vookly lasis, tho rosorvation systom JiJn `t knov my
o - mail aJJross. ln this caso, thoy voro moro than happy to
sonJ mo an o -mail conûrmation: thoy just JiJn `t havo my
o - mail aJJross. Hov is that possillo? Hov coulJ tho lolt
hanJ ol tho organization knov my o -mail aJJross, yot tho
right hanJ vas lorcoJ to roinvont tho vhool ovory timo?
Whon tho look vas pullishoJ in 2005, l honostly loliovoJ
this situation voulJ soon lo rosolvoJ. l am sorry to roport
that as ol 2008, tho stupiJ systom romains unchangoJ.
Whon rulos, policios, anJ procoJuros aro maJo at tho
highost lovols, it `s thoso at tho lottom vho usually sullor -
somotimos to an oxtromo Jogroo. A WonJy `s omployoo vas
shot ly an angry customor altor rolusing to givo tho cus-
tomor moro than throo packots ol chili sauco -tho corporato
policy - manJatoJ limit.
108
Homo Dopot rocontly ûroJ a managor anJ lormor
Employoo ol tho \oar lor thvarting an attomptoJ rollory.
A spokosporson lor Homo Dopot citoJ saloty ` anJ com-
pany policy ` as tho justiûcations. l `m villing to lot tho
loar ol litigation in tho oxocutivo suitos might havo haJ
moro to Jo vith it.
Vajor rocorJ lalols continuo to suo thoir most arJont
lans lor illogal JovnloaJing. Whilo protocting intolloctual
proporty is complicatoJ, l can `t imagino that suing toon-
agors lor sharing music is an olloctivo grovth stratogy.
Policios locomo pointloss vhon sonior olûcials lar lrom
tho lront linos manJato oJicts lrom on high. Tho policios
may appoar logical, lut ovontually thoso romotoly maJo
manJatos Jon `t ût tho roalitios ol tho situations. Tho compa-
nios havo insourcoJ tho policy lunction, lut thoy koop it in
tho hanJs ol managors vho aro tho loast likoly to mako it
actually vork.
MIx lt Upl
Broak tho catch -22 cyclo ly ouostioning hiorarchical man-
Jatos. \ou simply can `t mix a milkshako lrom an oxocutivo
suito.
Chapter 17
Peeves from 8elow
lor many yoars nov, l `vo loon tolling tho story ol Stuart
anJ tho olusivo milkshako. Dospito my lost ollorts to
impross upon an auJionco or an inJiviJual that tho los-
son ol tho milkshako lios in stupiJ systoms, too olton
pooplo try to lring it lack to tho haploss Stuart. Stuart
isn ` t ompovoroJ, ` thoy say. lsn `t it intorosting hov thoso
luzzvorJs soop into organization -spoak ovoryvhoro? l ` m
rst saiJ it, lut ompovor your omployoos `
has loon a mantra lor voll ovor a JocaJo nov.
Thoro`s no ouostion that pushing cortain Jocisions
Jovn to tho point ol contact is a vory gooJ iJoa in a
viJo rango ol situations, incluJing customor sorvico, von-
Jor rolations, anJ various lorms ol procoss improvomont.
So lot mo lo cloar lrom tho start that l am in lavor ol
ompovoroJ omployoos in a lroaJ array ol circumstancos.
Hovovor, ponning policy is not ono ol thom. Just as
organizations aro vulnorallo to pointloss policios vhon
constructoJ at tho highost lovols, roguo inJiviJuals lar
Peeves from ßeIow
109
110
lrom tho oxocutivo suitos aro also common porpotrators
ol sonsoloss rulos anJ procoJuros.
Horo`s an oxamplo. Pocontly l sulloroJ vith my yoarly
lout ol svimmor `s oar. Altor visiting tho Joctor, l vont
cial pro-
scription in hanJ. lt vas miJJay anJ things voro rathor slov.
Although no ono vas in lino at tho pharmacist `s countor, it
took hor a lov minutos to acknovloJgo my prosonco. At
rst l vas a lit porturloJ at tho vait, lut in rotrospoct l `m
glaJ l haJ a lov minutos to look arounJ. Vy oyo vas ovon-
tually Jravn to this:
1o our customcrs:
Wc do not Intcrrupt ccIIuIar pÞonc caIIs!
PIcasc nnIsÞ vour convcrsatIon bcIorc stcp-
pIng up to tÞc countcr Ior scrvIcc.
1Þank vou.
On tho surlaco tho statomont Wo Jo not intor-
rupt collular phono calls ` sooms polito. lsn `t that nico
ol thom? Thoy Jon `t vant to intorrupt mo. But vait a
minuto, is that an oxclamation point? \os, it is. Do you
knov vhat that moans? Thoy aro, in olloct, yolling at
mo - sultly porhaps, lut thoy `ro yolling all tho samo.
Thoy might ovon lo cursing.
This laminatoJ 8½ 11 inch sign tolJ mo a lot alout
this placo. Tho sign vas olviously croatoJ on somoono `s
PC anJ haJ tho tolltalo signs ol a clip art tomplato spit out
ol a $99 inkjot printor. Cloarly somoono haJ croatoJ this
rst roaction vas ono ol looling chastisoJ. l
haJn ` t ovon spokon to tho pharmacist yot, anJ alroaJy
l vas loing proomptivoly accusoJ ol somothing l JiJn `t Jo.
l haJ locomo rologatoJ to that nooJy, impolito class
ol pooplo knovn as customors. ` rst
timo in this particular pharmacy, anJ l haJ alvays lounJ
it to lo a smoothly running oporation. lt haJ oarnoJ my
loyalty up to this point, vhich vas prolally vhy l vas
stanJing thoro, villing to vait. Evontually tho pharmacist
omorgoJ lrom tho voll -stockoJ sholvos anJ askoJ, in a
polito voico, Hov may l holp you? ` Vost pooplo voulJ
havo simply hanJoJ hor tho proscription, lut l guoss l ` m
not liko most pooplo. l coulJn ` t lot this ono go, oithor.
l saiJ, \os, you can holp mo. l `m vriting a look on
policios. Can you toll mo moro alout this ono? ` l pickoJ up
tho ollonJing laminato anJ holJ it closo to my smiling laco.
Nov, ouito honostly, l assumoJ that tho sign haJ
loon croatoJ ly somoono olso, prolally an assistant
managor or an oasily lothoroJ cashior. What pharmacist
voulJ tako tho timo to croato somothing liko this? As it
turnoJ out, my assumption coulJ not havo loon moro
vrong. Altor sho procossoJ my ouostion, hor polito smilo
ouickly changoJ to a Jolonsivo scovl. Sho JiJn `t havo to
say a vorJ. l nov knov vho haJ croatoJ tho sign.
Peeves from ßeIow
111
112
lannio tho Pharmacist (not hor roal namo, ly tho vay)
procooJoJ to givo mo a soomingly lullot -pointoJ list ol
all tho roasons vhy this policy maJo sonso. Sho invokoJ
Hoalth lnsuranco Portalility anJ Accountalility Act (HlPAA)
rogulations. Cloaror communications. Courtosy lor othors
vaiting in lino. ExpoJioncy. ln hor minJ, tho argumont vas
soaloJ tightor than a chilJprool cap.
l listonoJ lor as long as lannio vantoJ to vont. Thon it
vas my turn. l askoJ, Hov olton Joos this roally happon?
What il it `s truly an omorgoncy anJ l `m on tho phono vith
tho proscriling Joctor or my ailing lamily momlor? ls this a
chainviJo policy? ` Sho managoJ to avoiJ Jiroctly ansvor-
c ouostions anJ instoaJ roturnoJ to
hor tiroJ talking points. l trioJ to pross lurthor, lut it soon
locamo cloar that this vas vory porsonal to hor. BosiJos,
my oar hurt. l took my Jrops anJ lolt.
Sinco that Jay, l `vo loon to othor locations ol this phar-
macy chain anJ thoso ol its compotitors. l `vo yot to soo
anothor sign liko it. l `vo also talkoJ to a numlor ol phar-
macists alout tho sign, anJ, oxcluJing lannio, l vas allo to
Jrav a gonoral consonsus. lannio `s sign roprosontoJ a pot
poovo, not a portinont policy. Whilo thoy all agrooJ that a
customor coll phono call is an occasional nuisanco, it vasn `t
cant prolloms.
Whilo l `ll novor knov lor suro, l `m villing to lot a
summor ` s supply ol oarJrops that lannio `s sign vas lorn
113
Peeves from ßeIow
ol lrustration. Sho is lrustratoJ that sho vont to phar-
macy school lor yoars, yot, Juo to cutlacks, is lorcoJ to
sorvo in a Jual rolo as loth pharmacist anJ cashior. Sho
is lrustratoJ that pooplo Jon `t troat hor vith tho rospoct
sho lools a prolossional Josorvos. lannio is taking hor
lrustration out on ovoryloJy vith hor pointloss policy
povor play.
Am l roaJing too much into all this? Vaylo. l am
ovon villing to concoJo that coll phonos coulJ possi-
lly croato somo prolloms nov anJ again. But horo `s my
point: This issuo is simply not vorthy ol a sign, lot alono
an oxclamation point. ll ovory ompovoroJ omployoo voro
to put up signs roprosonting thoir inJiviJual pot poovos, our
cos, vork sitos, varohousos, anJ storos voulJ lo lit-
toroJ vith tho physical manilostations ol ovory inJiviJual ` s
annoyancos.
ll you `ro going to allov a sign on coll phono usago,
vhat ` s going to stop tho posting ol signs liko thoso?
1o our customcrs:
Wc wIII not abIdc taIkIng or wÞInIng
cÞIIdrcn!
PIcasc Iock tÞcm In tÞc car bcIorc
approacÞIng tÞc countcr.
1Þank vou.

114
1o our customcrs:
PIcasc, no Ioud gum cÞcwIng wÞIIc
standIng In IInc!
It` s dIstractIng!
1Þank vou.
1o our customcrs:
Wc wIII not Intcrrupt vour coIIcc drInkIng!
PIcasc dIsposc oI vour babbIc - InducIng
Iattcs In tÞc propcr trasÞ rcccptacIcs.
1Þank vou.

1o our customcrs:
PIcasc pcrIcct vour dcbIt card swIpIng skIIIs
on vour own tImc bcIorc approacÞIng our
countcr!
It Is not our job to tcacÞ vou.
1Þank vou.

PiJiculous? Alsolutoly, lut roally no moro riJiculous
than lanny ` s sign.
MIx lt Upl
Discorn lotvoon positivo initiativos anJ roguo inJiviJualism.
lnsourcing crucial juJgmont Joos not moan ontortaining
ovoryono ` s pot poovo.
Chapter 18
PartIcIpatory PolIcy |akIng
ln Chaptor 15 vo loarnoJ alout tho purposo - Jrivon
grovth ol tho VanJorlilt Bill Wilkorson Contor. Sinco
19¯8, Dr. lroJ Boss has loon tho Contor `s loaJor. \ou may
romomlor that ho vas ono ol tho inJiviJuals vho vas
instrumontal in morging tho thon privato Bill Wilkorson
Contor vith VanJorlilt Univorsity `s moJical contor in 199¯.
Ono hunJroJ porcont grovth vas tho rosult.
What l JiJn `t oxplain is that ly morging tho tvo organ-
izations, Dr. Boss haJ in olloct agrooJ to a titlo chango
lrom Diroctor` to Associato Diroctor. ` His lunction JiJn `t
chango, minJ you, lut his titlo JiJ. But roal grovth loaJors
Jon ` t nooJ titlos to got tho jol Jono.
l havo novor mot Dr. Boss. lnstoaJ, l havo spokon to
many vho vork vith anJ lor him. To a porson, thoy toll
tho story ol a romarkally accomplishoJ man vho loaJs tho
vay pooplo vant to lo loJ.
Ho has a knack lor knoving vhon somothing nooJs
to chango in orJor lor us to movo lorvarJ anJ grov, `
PartIcIpatory PoIIcy hakIng
115
116
saiJ ono vho has vorkoJ vith him lor 20 yoars. (l hoarJ,
Ho ` s timoly. `) Anothor tolJ mo, ln orJor to lo allo to
tako aJvantago ol tho changos happoning arounJ us, vo
nooJoJ to join lorcos vith a largor ontity. ` (l hoarJ, Ho ` s
roalistic.`) A PP prolossional at tho Contor JoscriloJ him
as lovally iJiosyncratic. ` (That sounJoJ liko unscriptoJ `
to my oars.) Ho has a gooJ lool lor tho omotions ol
Jilloront pooplo. ` nition ol hov
l voulJ uso :~u::I::~ vhon Joscriling a grovth loaJor.)
Altor having continuoJ to raiso lunJs lor tho Contor
as a privato ontity, ho olloroJ to roturn any monios col-
loctoJ onco tho morgor vith VanJorlilt Univorsity logan
to unlolJ. ln his minJ, tho Contor alvays nooJoJ to lo
transparont vhon Joaling vith tho outsiJo vorlJ. Ono
patron saiJ sho prolally voulJ havo askoJ lor hor
Jonation lack haJ Dr. Boss not porsonally visitoJ hor to
oxplain tho ontiro situation. Ovor tho yoars, ovoryono has
como to TPUST Dr. lroJ Boss.
Ono ol tho most intriguing vays in vhich Dr. Boss
lostors Vilkshako Vomonts can lo soon in tho Contor ` s
policy tovarJ policios. Iot mo oxplain.
vo Jilloront Jivisions
that ollor troatmont lor a viJo rango ol conJitions that
alloct hoaring, spooch, languago, anJ voico proJuction.
Tho Voico Contor, tho PoJiatric looJing anJ Svalloving
Program, anJ tho Augmontativo Communication Program
aro just a lov ol tho Contor `s programs that Jrav pationts
lrom across tho stato anJ rogion. Whilo thoro is somo
commonality lor all tho Jopartmonts, thoro aro also many
Jilloroncos.
Anyono lrom a sonior citizon rocovoring lrom larynx
cancor to a proschool chilJ vith a clolt palato is rogularly
sorvoJ ly tho Contor. As a rosult, policios that rolato to
pationts croato somo spocial challongos. What is tho pol-
icy on spousos in tho room Juring troatmont? Who can
tako a chilJ on a lathroom lroak? Can sillings lo in tho
room Juring sossions? ll yos, hov olJ must thoy lo? ll
no, aro thoy allovoJ to play alono in tho vaiting aroa
vhilo tho paront attonJs tho troatmont? Hov many pooplo
shoulJ man tho phonos at any givon timo?
ln most organizations, thoso typos ol challongos voulJ
lo romoJioJ in tho vay vo `vo alroaJy soon oarlior. Tho lig,
gonoral stull voulJ lo hanJloJ on high ly pooplo tho lur-
c stull
voulJ lo pushoJ Jovn to inJiviJuals vho might not lo
allo to soo tho unintonJoJ consoouoncos ol thoir policy
actions. Ol courso, tho VanJorlilt Bill Wilkorson Contor isn `t
typical ol most organizations, anJ Dr. Boss is a Vilkshako
Vomont mavon.
At tho Contor, oach Jivision has a policy -making com-
mittoo. Hov this committoo is lormoJ is lolt to tho Jis-
crotion ol tho hoaJs ol oach Jivision, thanks to Dr. Boss
PartIcIpatory PoIIcy hakIng
117
118
Jomonstrating lull trust in his Jiroct roports. Whilo oach
Jivision has a Jilloront committoo makoup, thoy all sharo
tho notion that it shoulJ roprosont a lroaJ cross soction
ol tho Jivision in torms ol ago, tonuro, position, otc.
Thoy also sharo a vo moot vhonovor vo nooJ to
moot ` policy. lnstoaJ ol ouartorly or ovory thirJ ThursJay,
thoy moot vhon ono committoo momlor gots a couplo ol
othors to agroo that thoy nooJ to moot. AnJ thoso moot-
ings aro usually short -typically ono hour maximum. ll
somothing can `t got JociJoJ in that hour, thoy movo on.
ll an iJoa is talloJ or rojoctoJ, that Joosn `t moan it can ` t
lo rovisitoJ lator.
Policy - making rosponsililitios lor tho committoos nov
rango lrom pationt caro issuos to longth ol lunch lroaks.
AnJ vhilo thoro aro cortainly somo Univorsity policios to
vhich thoy all must aJhoro, Dr. Boss has croatoJ an onvi-
ronmont in vhich his stall has a lig say in things that
mattor most.
MIx lt Upl
Trust that toams can mix thoir ovn policy milkshakos
anJ knov that homomaJo onos aro alvays tho oasiost to
svallov.
Chapter 19
How ' bout Them Pomegranates:
Until just a lov yoars ago, l JiJn `t knov tho Jilloronco
lotvoon a pomogranato anJ a Pomoranian. Thanks to ono
locusoJ grovth loaJor, hovovor, l nov knov moro alout
tho vorsatilo pomogranato than almost any othor lruit. AnJ
it has all happonoJ so last.
Somohov l `vo gono lrom novor sooing or hoaring alout
a pomogranato to having it pop up on ovory monu, in ovory
grocory storo aislo, anJ in ovory convonionco storo in tho
UnitoJ Statos: pomogranato Popsiclos, pomogranato marga-
ritas, pomogranato glazoJ pork chops, pomogranato inlusoJ
soa lass. Unloss you `vo haJ your hoaJ lurioJ in an applo
orcharJ, l `m suro you `vo noticoJ tho omorgonco ol this nov
suporlruit. `
\op, vo alroaJy haJ suporpovors, suporstars, supor-
moJols, anJ Supor Bovls. Nov vo havo suporlruits. Tho
pomogranato usoJ to lo an olscuro lruit that only 12 por-
cont ol tho Amorican pullic knov alout anJ only 4 porcont
haJ ovor tastoJ. Nov it has pushoJ its vay to tho top ol
How 'bout Them Pomegranates!
119
120
tho lruit pilo anJ has achiovoJ suporlruit status. Whoro
hunJroJ yoars to vork thoir vay up to suporlruit sta-
tus, anJ thon tho pomogranato cut to tho lront ol tho lino.
Thoy havo nov locomo tho Boatlos ol tho proJuco vorlJ.
Pomogranatomania is upon us.
Hov JiJ this happon?
lor a roaJ varrior liko mo vho sponJs a lot ol
timo in rostaurants, it `s glaringly apparont that looJ has
locomo lashion anJ proJuco is nov looJ `s hauto cou-
turo. lrom shiitako mushrooms to hoirloom tomatoos,
ToJay ` s Josignor proJuco ovontually locomos tomorrov ` s
grocory aislo staplo.
So it has gono vith tho pomogranato. Tho suJJon
grovth ol this unlikoly lruit -cultivatoJ sinco anciont
timos throughout tho VoJitorranoan -is a truly romark-
allo story. Vy curiosity got tho lost ol mo. This kinJ ol
grovth, l thought to mysoll, Joosn `t happon vithout a
Vilkshako Vomont.
Vy hunch provoJ corroct. Altor Jigging a lit, l camo
to loarn that a voalthy couplo in Calilornia vith a provon
track rocorJ in groving lusinossos invostoJ in somo orcharJ
lanJ that vas lull ol various lruits, incluJing pomogranatos.
Exports aJvisoJ thom to plov unJor tho pomogranato troos
anJ plant nuts instoaJ.
IynJa Posnick thought it vas tho oxports vho voro
nuts. Sho lovoJ not only tho tasto ol tho pomogranato,
lut tho loro anJ tho logonJ surrounJing this oxotic lruit.
Posnick haJ also hoarJ that tho juico ol tho pomogranato
c
stuJios on its proportios.
AnJ it vorkoJ. POV WonJorlul juicos voro intro-
JucoJ to tho U.S. markot in 2002, anJ, vhilo tho com-
pany is still privatoly holJ, vorlJviJo annual salos aro
purportoJ to lo voll ovor $100 million. Tho vast majority
ol tho U.S. strain ol pomogranatos is grovn in ono valloy
in Calilornia. Tho Posnicks nov control tho majority ol
that supply. This has allovoJ thom not only to grov thoir
ovn lottloJ juico lranJ, lut to garnor a portion ol tho
rovonuo gonoratoJ lrom tho 4¯8 nov pomogranato proJ-
ucts introJucoJ ly othor companios in tho UnitoJ Statos
in 2006 alono.
vo yoars thoy `vo croatoJ
a catogory that JiJn `t oxist loloro anJ turnoJ this unJor-
Jog lruit into a phonomonon. What `s most intorosting to
mo as a grovth oxport is that this camo lrom outsiJo tho
inJustry. Hov JiJ tho managors vorking vithin tho $ ¯00
lillion glolal lovorago markotplaco allov an outsiJor to
121
122
croato anJ cornor an ontiroly nov juico catogory? l likon
tho pomogranato to tho lormorly plain Jano or John vho
struts into your high school rounion, turning hoaJs anJ
Jropping javs arounJ tho room. Whoa, voulJ you look
at that? Hov JiJ vo not soo all that potontial? `
Tho losson ol tho pomogranato is simplo yot povorlul.
Pomogranato proportios havo not changoJ in thousanJs
ol yoars. Tho tasto, tho appoaranco, anJ tho supposoJ
moJicinal proportios havo romainoJ consistont. \ot it took
ono visionary DaviJ to slingshot tho pomogranato right
lotvoon tho oyos ol tho lovorago Goliaths. Whilo othor
managors in that inJustry voro lusying thomsolvos trying
to movo a soJa Jrink lrom ono calorio to zoro anJ lorc-
ing calcium anJ high -lructoso corn syrup into somothing
approximating juico, IynJa Posnick anJ POV WonJorlul,
IIC rolioJ on thoir innor juJgmont anJ singlo -hanJoJly
maJo tho pomogranato uliouitous.
This is a thomo that `s common to any organizoJ human
onJoavor. Tho povorlul yot myopic incumlonts aro olton
usurpoJ ly outsiJors vho Jon `t knov tho rulos voll onough
to ovon knov thoy `ro lroaking thom. ln my oxporionco, sul-
stantivo chango rogularly comos lrom thoso poriphoral inno-
tho lovorago inJustry.
Coca - Cola, tho vorlJ `s largost lovorago ontity, rocontly
paiJ $4.2 lillion in cash (that `s right, lillion vith a I) lor
123
Nov \ork -lasoJ Glac oau, makor ol lranJs liko Vitamin
Wator anJ SmartWator. That `s not a laJ solling prico lor a
company vith provious -yoar oarnings ol only $350 million.
lolloving tho luyout, tho N~u î·:Þ T:u~: ouotoJ inJus-
try consultant Tom Pirko as saying, Whon you look at
vhat ` s happoning vith Coko, thoy can `t innovato thoir vay
out. Thoy havo to luy thoir vay out. ` (By tho vay, ono
ol tho lost -
incluJos - you guossoJ it - pomogranato juico.)
IynJa Posnick trustoJ hor ovn juJgmont alout thoir
novly acouiroJ orcharJs, anJ JiJn `t lollov tho aJvico ol
tho nutty oxports. Whilo POV WonJorlul Joos outsourco
lor aJvico on ovorything lrom packaging to proJuction,
mont, anJ tho sulsoouont succoss spoaks lor itsoll.
IynJa Posnick is a roal grovor. Don `t lo surprisoJ
il sho Joosn `
milkshako to a storo noar you.
MIx lt Upl
Iiston to your innor voico. Grovth loaJors loarn that
lolioving in thoir instincts can olton loar tho svootost lruit.
Chapter 20
Come Harter or HIgh Water
Thoro aro alvays challongos rolatoJ to grovth. ll it voro
oasy, ovoryono voulJ lo Joing it. Whon it comos to
grovth, vhat you can count on is not loing allo to count
on anything. ln lact, raroly can grovth lo tracoJ lack to
simply actions takon Juring gooJ timos. Voro olton than
not, it has as much to Jo vith hov a loaJor roacts to
aJvorsity as opportunity. Opportunitios aro usually protty
apparont. Truo aJvorsity makos soll - Joultors ol us all.
Think you `vo soon somo tough timos? ConsiJor tho story
ol Vichaol Hartor anJ tho toam at lntoprint Tochnologios.
ln 1989, Vichaol Hartor anJ lrank Hill startoJ a
Virginia - lasoJ Jistrilutor ol proJucts lor commorcial print-
ors. By 2003 salos voro going voll anJ haJ roachoJ sovoral
million Jollars, so thoy JociJoJ to oxpanJ ly acouiring a
Jistrilutor vith a similar proJuct mix. Tho purchaso voulJ
oxtonJ thoir torritory lurthor south into tho Gull Coast
rogion. By comlining tho tvo lusinossos, thoy voulJ
strongthon salos synorgy, vith somo ¯0 porcont ol thoir
proJucts supplioJ ly ono ol tho lost -knovn lranJs in tho
125
126
lusinoss. Tho luturo lookoJ vory lright to our lrionJs at
lntoprint. But looks can lo Jocoiving. Tho unoxpoctoJ vas
alout to como pounJing on thoir Joor.
On Varch 31, 2004, lntoprint closoJ on a sulstantial
lank loan in orJor to purchaso tho othor Jistrilutorship.
Throo anJ a hall months lator, tho primary supplior to loth
prolloms vith Jolivorios. Tho partnors voro concornoJ.
But tho orJoal haJ just logun.
canos hit tho novly acouiroJ Gull Coast torritory. Each
hurricano lrought uniouo trials anJ trilulations lor Hartor
anJ his crov. Tolocommunications lor tho ontiro lusinoss
voro contoroJ in Volilo, Alalama. Evon vithout a Jiroct
hit, tho intornal anJ oxtornal communications systoms
voulJ lo Jovn lor Jays on onJ. Employoo attonJanco
cant Jam-
ago or ovon total lossos ol thoir homos. Tho supply chain
locamo ovon loss roliallo. Print runs movoJ to othor parts
ol tho country, lovoring JomanJ lrom thoir customors.
As vo all romomlor, onco hurricanos Katrina anJ Pita
hit vithin a month ol oach othor, gasolino pricos ouickly
spikoJ anJ stayoJ high. lor any Jistrilution anJ on - sito
sorvicing lusinoss, transportation is ono ol tho primary
variallo costs. Voanvhilo, tho loan lntoprint took out
in Varch ol 2004 vas tioJ to tho primo rato. lntorost ratos
roso nationally, climling lrom 4.¯5 porcont to 9.25 porcont,
ossontially Joulling tho loan paymonts -at a timo lntoprint
coulJ loast allorJ it. Somo protty Jark clouJs voro nov
olscuring tho onco - lright luturo.
Any ono ol thoso sotlacks coulJ havo causoJ tho
avorago loaJor to throv up his or hor hanJs anJ say,
Oh, voll, laJ luck. Not my lault. Nothing l can Jo nov. `
But Vichaol Hartor anJ his toam aro not orJinary loaJors.
oJ thoso aroas that nooJoJ
ip
thoir rovonuo mix. ln othor vorJs, thoy rightly JociJoJ to
cantly Jocroaso thoir JoponJoncy on tho lankrupt
supplior. SoconJ, thoy JotorminoJ that tho only vay thoy
coulJ achiovo this typo ol turnarounJ vas through thoir
pooplo. Evontually, l haJ a protty gooJ iJoa ol vhat vo
nooJoJ to Jo, ` saiJ Vichaol. Tho ouostion in my minJ
vas vhothor or not vo coulJ convinco our stall ol vhat
vo nooJoJ to Jo. `
Tho koy to tho turnarounJ vas cloarly gotting loth tho
olJ salos lorco anJ tho nov salos lorco to omlraco tho nov
ip. Somo got it right avay. Othors took somo
timo. ln tho onJ, a lov JiJn `t mako it. lor thoso vho JiJ,
trust vas a coro lactor. Through tho toam `s timoly Jocision
making, roalistic goal sotting, unscriptoJ communication,
sonsitivity to inJiviJual nooJs, anJ an oponly transparont
stylo, lntoprint not only survivoJ, lut thrivoJ.
127
128
Dospito loing rockoJ ly soomingly ono catastropho
altor anothor, Vichaol anJ his partnors novor lolt sorry lor
thomsolvos. Givon tho string ol sotlacks, it voulJ havo
loon roasonallo lor any loaJors to ouostion thoir juJg-
mont. l `m suro thoro voro moro than a lov tough Jays.
\ot ly not alloving tho vinJs ol aJvorsity to throv thom
oll thoir chartoJ courso, lntoprint sailoJ on to grovth.
l ` vo alvays maintainoJ that a privatoly holJ, sustainoJ
grovth organization is ono that can achiovo grovth ol
vo yoars in a rov. Dospito lntoprint `s
incroJillo olstaclos, it is alout to closo tho looks on
vo
yoars, salos havo moro than triploJ anJ tho lusinoss has
grovn to 41 loyal omployoos.
Altor hoaring Vichaol toll his story, l havo no Joult
that ho vill locomo a momlor ol that oxclusivo clul ol
provon sustainoJ grovth loaJors. lorcoJ into a Jaily
crash courso on gooJ juJgmont, Vichaol Hartor anJ
lntoprint havo roalizoJ not only roal grovth, lut truo
visJom.
MIx lt Upl
Hono your juJgmont skills through oxporionco to onhanco
your visJom, anJ thoroly grov your organization. ln tho
laco ol aJvorsity, visJom usually vins.
129
£xtra 7oppIngs
Don ' t aIIow pbrases Iike tbese to go uncbaIIenged
Clich o s liko tho lolloving coulJ vory voll lo truo. Thoy
coulJ also lo an unnocossary hinJranco to grovth. \ou
nooJ to lo tho juJgo.
Our consultant tolJ us it vas tho noxt lig thing. `
Our accountant maJo us Jo it to savo monoy. `
Our lavyors saiJ vo haJ to or olso vo coulJ got suoJ. `
Wo Jon ` t nooJ to roinvont tho vhool on this ono. `
lnlormation Tochnology (lT) says it voulJ lo a lig
mistako to Jo it that vay. `
Wo trioJ that onco: it Joosn ` t vork in this kinJ ol
organization. `
PoIicy manuaIs tend to gatber dust
lor a policy systom to truly vork it must lo consistontly
roviovoJ anJ roinlorcoJ, lo roprosontativo, anJ lo rogu-
larly communicatoJ.
Consider tbat Ieaders are readers and
readers are Ieaders
Tho visor vo locomo, tho lottor Jocisions vo mako. Tho
lottor Jocisions vo mako, tho moro likoly it is our organi-
zations vill grov. Tho moro our organizations grov, tho
moro allo vo aro to attract groat pooplo vho can Jo
( )
130
groat things. That allovs us to sponJ moro timo roaJing,
listoning, anJ gaining visJom. Soo hov that vorks?
Pooplo olton ask mo lor a list ol looks thoy shoulJ
rst say that l am a lig lan ol magazinos
anJ suggost roaJing a couplo ovory Jay. Hovovor, vhon
toach us moro alout grovth anJ chango anJ tho human
conJition than almost any managomont look. Horo aro
a lov looks that l loliovo vill holp anyono vith thoir
grovth aspirations:
¹uuuuuI~u ··u:u¤~. M~::u~II~: 1~u::, TI·uu:
{~JJ~::·u, uuu II~ ·j~u:u¤ ·J II~ .u~::cuu W~:I , ly
Stophon E. Amlroso (Simon 8 Schustor, 199¯).
TI~ EJJ~cI::~ E.~cuI::~. TI~ 1~Ju:I::~ ·u:u~ I·
·~II:u¤ II~ R:¤II TI:u¤: 1·u~ , ly Potor l. Druckor
(Harpor 8 Pov, 196¯).
Muu~ I· ·I:cÞ. WI) ··u~ 1u~u: ·u::::~ uuu ·II~::
1:~, ly Chip Hoath anJ Dan Hoath (PanJom
Houso, 200¯).
TI~ R::~ ·J TI~·u·:~ R··:~:~II , ly EJmunJ Vorris
(CovarJ, VcCann 8 Googhogan, 19¯9).
TI~ R::~ uuu 1uII ·J II~ TI::u R~:cI , ly William I.
Shiror (Simon 8 Schustor, 1960).
SectIon 5
Address the "People
Problem" Problem
( )
132
l talk to a lot ol lusinoss grovth loaJors, incluJing
ontropronours at start-ups, managing Jiroctors ol traJo
associations, anJ hoaJs ol glolal oporations lroaking
into nov markots. Noarly ovory timo, thoy toll mo thoir
numlor-ono olstaclo to grovth is tho lack ol groat poo-
plo. What`s holJing thom lack is not a capital accoss
issuo, markot conJitions, or govornmont rogulations. lt`s
pooplo. Tho smart loaJors aro conlronting this issuo vith
a varioty ol Vilkshako Vomonts, putting thoir innovativo
onorgios into hiring, training, anJ rotaining tho vory lost.
Thon thoro`s ovoryono olso.
Whon tho OPEN Jivision ol Amorican Expross polloJ
625 lusinoss ovnors on vhat skills thoy voulJ most liko
nJing
anJ rotaining tho lost anJ lrightost`? l Jon`t knov tho
vo.
lnstoaJ, thoso ovnors montionoJ tho lolloving aroas:
1. Customor sorvico
2. Varkoting anJ salos
3. linancial managomont
4. Docision making
5. Nogotiation
Tho groatost larrior to grovth lor most organizations
is tho pooplo prollom, anJ ovoryono knovs it-lut lit-
tlo is Jono to ovon acknovloJgo it, lot alono solvo it.
133
Thoroin lios tho prollom. linJing anJ kooping tho lost
anJ lrightost is a cloar compotitivo aJvantago, lut too
lov voulJ-lo grovth loaJors aro villing to mako it a pri-
ority. Why? lt all gots lack to vhat l saiJ in Soction 2:
Vost managors got up anJ Jo vhat thoy vant to Jo, not
vhat nooJs to lo Jono. Ouito simply, most pooplo Jon`t
onjoy vorking on pooplo issuos.
Do you soo tho opportunity horo? Organizations
that aro groving givo hiring, training, anJ rotaining tho
omphasis thoy Josorvo. Vany managors ol organizations
that aron`t groving concontrato on ovorything IuI tho
rst to complain
nJ gooJ holp anymoro.`
Noxt timo you hoar somoono laJ-mouth tho Amorican
vork othic, ploaso consiJor:
Whilo tho numlor ol hours vorkoJ por vook is
Jocroasing in ovory othor inJustrializoJ country,
in tho UnitoJ Statos tho avorago vorkor is toiling
moro hours por vook than ho or sho JiJ 25 yoars
ago, accorJing to tho Buroau ol Ialor Statistics.
ln a \ahoo! Hot Jols survoy, 45 porcont ol rospon-
Jonts JiJ not tako all ol thoir vacation Jays in tho
provious yoar, vhilo 39 porcont saiJ thoy voro too
oxhaustoJ to tako a roal vacation. Tho numlor-
ono roason lor not taking thoir allottoJ timo? Too
much vork.`


Address the "PeopIe ProbIem" ProbIem
134
AccorJing to tho WuII ·I:~~I {·u:uuI, tho avorago
CEO nov gots paiJ moro than $400 lor ovory
$1 oarnoJ ly tho avorago vorkor. ln 1990 CEO pay
vas loss than $150 lor tho avorago vorkor`s $1.
Noarly hall ol all privato-soctor vorkors got no
paiJ sick Jays, says tho N~u î·:Þ T:u~: lor looJ
sorvico vorkors, it`s 86 porcont. (Hov `lout a snoozo
vith thoso lrios, maàm?)
Tho U.S. Buroau ol Ialor Statistics ostimatos a shortago
ol skilloJ vorkors ol 10 million ly 2010 anJ as many as 35
million vithin tho noxt 30 yoars. Our groving oconomy,
rotiring laly loomors, anJ a shilt to an inlormation- anJ
sorvico-lasoJ oconomy aro all contriluting to tho crisis.
Thoro`s an oscalating var lor talont, anJ it`s only
going to got vorso. Wo can ouilllo ovor projoctions anJ
statistical mothoJs anJ immigration tronJs, lut thoso aro
issuos arounJ tho margins. A rocont survoy ol 4,000 hir-
ing managors covoroJ in tho Ec·u·u::I magazino lounJ
ll a vacancy haJ grovn lrom 3¯ Jays
in 2004 to 51 Jays just throo yoars lator. Ol tho managors
survoyoJ, 62 porcont vorrioJ alout company-viJo talont
shortagos anJ moro than a thirJ aJmittoJ to hiring lolov-
tho pooplo prollom` prollom to got solvoJ horo or any-
vhoro olso in tho Wostorn vorlJ anytimo soon. This is
ono aroa scroaming lor somo Vilkshako Vomonts.


135
Chapter 21
The People Problem Polka
l rocontly JiJ somo vork lor ono ol tho vorlJ `s loaJors
in Jata storago proJucts. Tho Calilornia -lasoJ company has
grovn at a tromonJous rato, Juo in largo moasuro to markot
conJitions. Evorything lrom Sarlanos -Oxloy roouiromonts
to hoalth inlormation protoction manJatoJ ly tho Hoalth
lnsuranco Portalility anJ Accountalility Act (HlPAA) has
maJo Jata storago socurity moro important than ovor. That `s
just tho loginning. Tho nooJ to storo Jata has movoJ lar
nancial inJustrios.
Socuro anJ roaJily accossillo inlormation is nov a coro
roouiromont lor noarly ovory organization.
This company has grovn lastor than tho ovorall markot
ly partnoring vith a sorios ol valuo -aJJoJ rosollors. Thoso
inJoponJontly ovnoJ inlormation tochnology spocialists
ollor a viJo rango ol lT solutions, incluJing Jata socurity.
lor tho past sovoral yoars, thoy havo all grovn vory voll
togothor.
This particular Jata storago company hostoJ a sorios
ol throo tvo -Jay loarning ovonts lor thoir most valuallo
The PeopIe ProbIem PoIka
136
partnors (VVPs). So, just to roviov, vhat vo havo horo is
a roally last -groving, voll -run Jata storago company con-
Jucting loarning ovonts lor thoir last -groving, voll - run
partnors. So lar, so gooJ.
l vas tho only outsiJo olsorvor invitoJ to thoso
ovonts. Thoroloro, l coulJ ollor nothing lut an outsiJor ` s
porspoctivo. What l hoarJ at all throo ovonts vas vory
consistont. Tho Jata storago company JiJ a tromonJous
jol ol oxplaining thoir nov proJucts, policios, anJ pro-
cossos. Discussions at tho lunch tallos anJ ovor loors at
night invarially sounJoJ liko a popular song vith lamiliar
vorJs. lt haJ tho morchanJiso moloJy anJ tho lolls anJ
ict
chorus - typical lattlo hymns, straight lrom tho tronchos,
olJ.
PogarJloss ol onJoavor, vhon you put tho loaJors ol
partnoring organizations togothor, thoy sing alout tho
thing. ` Tho thing ` is thoir porcoption ol vhat thoy Jo.
ln this caso, thoy soll llack loxos. Thoroloro, thoy liko
to sing songs alout llack loxos. Thoy liko to sing songs
alout solling llack loxos. Thoy liko to sing songs alout
tho pooplo vho luy llack loxos. AnJ ovory lit ol this is
proJuctivo anJ nocossary. Tho outsiJor approvoJ.
But this outsiJor alvays looks lor orrors ol omission.
lor mo, it `s liko sooing my lavorito lanJ in concort. l liko
all tho songs thoy `ro playing, lut l am JisappointoJ il
137
The PeopIe ProbIem PoIka
l Jon `t hoar my lavorito. Whilo l onjoyoJ tho ontiro sot
list lor thoso ovonts, my lavorito song vas missing: Tho
Pooplo Prollom Polka. `
Tho lunny thing is, it took an outsiJor to rocognizo
tho missing song. Tho vholo purposo ol thoso ovonts vas
lor tho solution proviJor to holp its rosollor notvork grov,
thoroly groving along vith tho rosollors. At all throo
ovonts, l askoJ tho rosollors tho samo ouostion l ask ovory
group ol loaJors: What is your liggost larrior to grovth? `
Thoy sang Posourcos!` in porloct harmony. R~:·u:c~: ,
l ` vo como to loarn, is tho lT inJustry `s vorJ lor j~·jI~ .
Usually, in organization -spoak, tho vorJ :~:·u:c~: rolors
to rav matorials or capital, not pooplo. Whon thoy saiJ
that :~:·u:c~: moant human loings, it got my attontion.
What got my attontion ovon moro, hovovor, vas
that vhilo ovoryono agrooJ that rosourcos voro inJooJ
tho liggost larrior to grovth, thoy spont thoir tvo - Jay
hootonanny singing tho samo song thoy alvays sing: Tho
BallaJ ol tho Black Box. `
Boy, thoy lovo that song, anJ thoy suro aro gooJ at
singing it. Thoy can `t got onough ol it. AnJ it `s a gooJ song!
Talos ol intriguo anJ horoism, looms anJ lusts, comoJy
ict anJ rosolution. lt `s thoir Stairvay to
lroolirJ.`
138
Why Jo thoy koop practicing tho song thoy knov
so voll vhon thoy ` oJ tho Tho Pooplo
Prollom Polka ` as tho ono song nooJing tho most atton-
tion? This group novor rohoarsoJ it onco. Thoy lovo that
BallaJ ol tho Black Box ` so much that thoy koop aJJing
vorsos. ll you `ro ovor 40 yoars ol ago, think Don VcIoan ` s
Amorican Pio. ` ll you `ro unJor 40, think P. Kolly `s ln tho
Closot. `
Ploaso Jon `t misunJorstanJ mo. This is ono ol my
lavorito groups. By anyono `s moasuro, thoso guys aro
numlor ono in thoir gonro. But my jol vas to suggost hov
to koop this curront suporgroup lrom locoming tomor-
rov`s has -loons. Tho tuno that thoy nooJoJ to vork on
tho most vas olvious to mo anJ apparontly not unknovn
to thom. Iiko so many ol us, hovovor, thoy haJ choson to
koop playing tho samo olJ tuno thoy knov so voll.
MIx lt Upl
Iiston lor tiroJ tunos in your organization. Aro you play-
ing thom to Joath? Vaylo it `s timo to rock Tho Pooplo
Prollom Polka. `
Chapter 22
ErIc ' s ExcalIbur
l moot aJmirallo pooplo almost ovory Jay: lusinoss loaJors,
community activists, singlo paronts vorking tvo jols just to
mako onJs moot. Nono ol thom ovor consiJors thomsolvos
to lo a horo. Such is tho caso vith Eric Hoovor.
ln oarly 2006, tho VoaJvillo, Ponnsylvania, Chamlor
ol Commorco askoJ mo to lo tho koynoto spoakor at thoir
annual Jinnor. HunJroJs ol outstanJing pooplo voro
thoro that ovoning. Ono Joûnitoly stooJ out. Just loloro
taking tho stago, l vas introJucoJ to Eric, vho haJ just
loon namoJ National Small Businossporson ol tho \oar
ly tho Small Businoss AJministration in Washington, D.C.
(By tho vay, tho soconJ -placo ûnishor vas AnJrov liolJ,
lounJor ol PrintinglorIoss.com, alout vhom l vroto
oxtonsivoly in my ûrst look.)
Eric vas askoJ to say a lov vorJs to tho auJionco
loloro l spoko, anJ ho politoly agrooJ. Hovovor, it vas
olvious that ho vas uncomlortallo tooting his ovn horn.
ErIc's ExcaIIbur
139
140
Tho local olûcial introJucing him rooloJ oll a list ol accom-
plishmonts that got my unJiviJoJ attontion. Eric `s humllo
av - shucks Jomoanor roally piouoJ my curiosity. Hoaring
him spoak, l maJo a montal noto that this man haJ an ovon
liggor story to toll.
At tho onJ ol tho ovoning l approachoJ Eric anJ
askoJ il l might ono Jay como lack to visit him. Ho saiJ,
Suro, that voulJ lo groat. ` Ho prolally thought that vas
tho last ho voulJ ovor hoar ol mo. lnstoaJ, a lov months
lator ho vas gracious onough to allov mo to visit vith
him lor a Jay. l travoloJ to Connoaut Iako, Ponnsylvania
(population ¯00), sovon milos lrom tho spravling motrop-
olis ol VoaJvillo (population 13,421).
Eric Hoovor lounJoJ tho Excalilur Vachino Co. lnc., a
motal lalrication lusinoss, in 1988, vhilo holJing Jovn
a lull -timo manulacturing jol. Ton yoars lator ho maJo tho
loap to running Excalilur lull -timo. That `s vhon things got
roally intorosting. Salos grov ly moro than 350 porcont
anJ ho vas omploying 125 pooplo ly tho timo ho von
this prostigious avarJ.
Ovor tho courso ol our Jay togothor it logan to Javn
on mo that l vas in tho prosonco ol a truly giltoJ loaJor.
PosorvoJ to tho point ol loing shy, Eric vas moro ol a
shovor than a tollor. Ho shovoJ mo his original ¯,000 -souaro-
loot lacility. Ho shovoJ mo his nov 30,000 -souaro- loot
plant. Ho thon Jrovo mo to a host ol othor community
projocts in vhich ho vas involvoJ. lt vasn `t until vo sat
Jovn lor lunch that l got to hoar tho story lohinJ tho
succoss.
Tho socrot to Eric Hoovor `s succoss is so simplo yot
so prolounJ. Eric luilt his lusinoss in orJor to sorvo
his community anJ tho pooplo vho livoJ vithin it. His
grovth story lascinatoJ mo. Ho startoJ out making vory
largo custom machino tool parts vhon tho machino tool
inJustry vas supposoJly Jying in this country. Whoro
most pooplo sav Joclino, ho sav opportunity. AnJ ho
JiJn ` t stop thoro.
Altor shipping thoso largo parts arounJ tho country
lor somo timo, Eric logan to notico prolloms vith tho
stanJarJ pallots ho vas using. His hoavy parts voro rip-
ping thom to shroJs, anJ it vas costing him roal monoy.
No prollom, ` ho thought. Wo `ll just mako our ovn. `
Ho contactoJ tvo acouaintancos vho haJ rocontly loon
JovnsizoJ lrom thoir vooJvorking jols. ln no timo,
Excalilur not only vas making its ovn hoavy -Juty pal-
lots, lut vas markoting thom to othors in tho rogion vith
a similar nooJ. A nov lusinoss vas lorn.
Onco tho pallot lusinoss roachoJ critical mass, tho
tvo original vooJvorkors approachoJ Eric vith anothor
iJoa. Thoy vantoJ to got lack into custom calinotry, thoir
ErIc's ExcaIIbur
141
142
truo passion. Somohov that movo into custom calinotry
loJ Eric Hoovor anJ his passionato vooJvorkors into
Iancolot Construction, luilJors ol ûno homos.
Similar to his pallot opportunity, Eric oxporioncoJ
prolloms vith loth cost anJ Jolivory lrom his trucking
vonJors. BlaJo Transport is nov a soparato proût contor
hauling gooJs lor Excalilur anJ its partnors lor a lraction
ol tho olJ cost. Ono ol tho Jrivors lor BlaJo haJ oarlior
sulloroJ a lack injury vhilo vorking lor anothor trucking
ûrm. Altor lully rocuporating, ho vas still laiJ oll. l ` m just
looking lor anothor chanco, ` ho tolJ Eric. That Jrivor has
loon on tho roaJ succosslully lor BlaJo Transport nov
lor throo yoars.
Eric Hoovor unJorstanJs pooplo. Anothor provon
loaJor in tho community vas unhappy in his long - torm
position as gonoral salos managor at a local auto Joalor.
Eric saiJ, Como vork lor mo. `
Doing vhat? ` askoJ tho vary salos managor.
l vant you to soll our machino tooling sorvicos, ` ho
roplioJ.
l Jon ` t knov anything alout machinoJ parts, Eric. `
That ` s all right, ` Eric saiJ. ll you can soll cars, you
can soll our sorvicos. `
143
ErIc's ExcaIIbur
But l lovo cars. Cars aro my lilo, ` tho salos managor
saiJ.
Tho solution vas so olvious, yot l `m conûJont
l voulJn `t havo como up vith it, anJ l Joult most othor
so - calloJ loaJors voulJ havo, oithor. Eric Hoovor loliovos
in pooplo. Ho invosts in othor pooplo ` s passions.
His solution vas to hiro tho lormor salos managor lor
Excalilur, anJ at tho samo timo ho lounJoJ Zoljak Auto
Salos, a sollor ol lato -moJol usoJ cars. \ou havo to soo
it to loliovo it. Wo pulloJ oll ol a voll - tralûckoJ rural
piko into a usoJ car lot, vhoro vo voro grootoJ ly tho
voman vho hanJlos tags, titlos, taxos, anJ tho liko. \ou
valk through tho car lot olûco anJ lo anJ loholJ, thoro ` s
a stato - ol - tho - art machino tool lacility, vith sorvicos solJ
ly tho samo guy vho is ooually passionato alout his `
nov car lot.
Ìn a 2007 survey conducted by YankelovIch Partners. two ·
thIrds of respondents saId. " Ìt Is Important that people
see me as passIonate about thIngs that Ì care about. "
Eric caros alout this community, ` says my lrionJ
Charlio AnJorson, prosiJont ol tho VoaJvillo Chamlor ol
Commorco anJ anothor lormiJallo charactor. Ho ûnJs
out vhat pooplo aro passionato alout anJ thon ho lunJs it.
( )
144
EvoryloJy vins in that oouation. ` l coulJn `t havo saiJ it
lottor mysoll, Charlio.
Eric JiJn `t lot somo national avarJ go to his hoaJ. Ho `s
still Jrivon ly his purposo: holping his community, holping
his noighlors, croating oconomic opportunitios. ln 2006
ho purchasoJ Sipco VolJing Tochnologios ol VoaJvillo,
aJJing anothor 65 omployoos. Iator that yoar ho acouiroJ
Vulti - Tool lnc. anJ its sulsiJiarios, aJJing anothor 110
lucky omployoos to his rostor. His charitallo lounJation is
nov in lull sving, raising monoy lor ovorything lrom com-
munity hoalth initiativos to collogo scholarship lunJs.
To mo Eric Hoovor is tho omloJimont ol tho
Amorican Jroam, vhich ly Joûnition makos him a horo.
ln an inJustry that many pronouncoJ JoaJ in this coun-
try a long timo ago, in a goography that has soon its sharo
ol rough oconomic timos, this irroprossillo lorco lounJ
opportunity in tho most unlikoly placos anJ pooplo.
Oh, ly tho vay, Eric Hoovor novor vont to collogo.
Ho vas too lusy roalizing roal grovth through an unva-
voring Jovotion to a vorthy purposo.
MIx lt Upl
UnJorstanJ that Vilkshako Vomonts most olton occur
vhon vo aro in a position to lool passionato alout vhat
vo Jo. Grovth loaJors invost in othor pooplo ` s passions.
Chapter 2J
Why People Work
l vork vith a lot ol nonproût associations. Pocontly l mot
a young man in his miJ -20s, on his soconJ roal jol out ol
school. Ho haJ vantoJ to put his all into a placo vith a
purposo. Ho turnoJ Jovn a jol olloring moro monoy to go
vith a national nonproût hoalth organization. Ho longoJ to
lo a part ol a group making a roal Jilloronco, so this lunJ -
raising position vas iJoal. Ho camo into tho olûco his ûrst
Jay optimistic, onthusiastic, anJ roaJy to sorvo.
Unlortunatoly, things JigrossoJ ouickly lrom Paul ` s
oxpoctations. Tho ûrst Jay, ho ûlloJ out paporvork. ln
vook ono, thoro vas no training. His only instruction
vas a short talk alout tho tvo major ovonts ho nooJoJ
to spoarhoaJ, vith tho Jismissivo instructions that lt ` s all
thoro in tho ûlo calinot. `
Vory soon Paul logan to notico that noloJy soomoJ to
talk alout tho purposo ol this hugo national organization.
Ho haJ thought ho vas signing up to holp oraJicato a Jis-
oaso that allocts millions. lnstoaJ, all ho ovor hoarJ alout
Why PeopIe Work
145
146
or JiscussoJ in mootings voro luJgot ûguros, oxponso
allocations, anJ olûco rulos anJ procoJuros. Ho has trou-
llo rocalling tho national Jiroctor `s namo: tho only timo ho
hoars anything lrom this oxocutivo `s olûco is vhon thoro
is a llast o -mail alout somo policy chango. lrom tho start
ho has lolt untothoroJ, unsupportoJ, anJ uninlormoJ,
vith noarly all portinont inlormation coming through tho
grapovino.
Agrooing to a lovor salary than tho othor jol olloroJ
is only tho ûrst ûnancial hit Paul has takon. Bocauso ol
a long -stanJing policy, roimlursallo oxponsos aro paiJ
only monthly, no mattor vhon thoy aro sulmittoJ. So
vhilo ho is laying out lunJs lor ovont oxponsos such as
lalloons, ico, anJ snacks -in somo months $600 to $ 800
vorth - ho gots roimlursoJ only vhon it is accounting ` s
Jay to issuo chocks, not vhon his croJit carJ lill is Juo.
This nov omployoo, oarning loss than $40,000 a yoar,
ossontially has to lonJ monoy to his giant omployor oach
month.
As somoono vho sots up anJ runs charity ovonts,
Paul is solJom in tho olûco. \ot ho is not proviJoJ vith
a laptop (his loss thinks it `s an unnocossary luxury), anJ
thoro is no lrovsor -lasoJ o -mail systom. Ho must como
into tho olûco to chock mossagos, ovon though tho jol
has him out vorking in tho ûolJ all Jay. What makos this
ovon vorso is that his proJocossor gavo a porsonal laptop
to tho company as a charity Jonation. Paul can `t uso that
ono, though, locauso lt hasn `t loon approvoJ ly our lT
Jopartmont in D.C. `
Dospito tho initial spooJ lumps, Paul vas still roaJy
to chargo ahoaJ. Ho luckloJ Jovn anJ oxcooJoJ all pro-
vious rocorJs lor Jonations in a major lunJ -raising ovont,
lringing in sovoral thousanJ Jollars moro than oxpoctoJ.
Ho vas roaJy lor praiso anJ a hoarty slap on tho lack.
lnstoaJ, ho lounJ out in his ovaluation that ho vas
actually unJor tho projoctoJ rovonuo luJgot lor tho yoar.
lt haJ loon sot artiûcially high sovoral yoars loloro anJ
novor aJjustoJ. Oh, Jon `t vorry alout that, ` tho rogional
Jiroctor tolJ him. That ` s just tho vay vo luJgot arounJ
horo. Tho othor Jopartmonts alvays mako up lor it. `
Paul nov lottor unJorstanJs vhy ho `s tho lourth por-
son in lour yoars to havo his position. Voanvhilo, his
loss thinks thoy just can `t got gooJ holp thoso Jays, `
anJ tho organization complains, lt ` s gotting toughor oach
yoar to grov our lovol ol Jonations anJ voluntoors. `
This onthusiastic, harJvorking, goal -oriontoJ omployoo
camo in as a star rocruit that any organization voulJ Jroam
ol hiring. Nov ho has ono loot out tho Joor -a Joor that
coulJ oasily lo proppoJ opon ly tho organization `s 254 - pago
omployoo hanJlook.
Why PeopIe Work
147
148
Iot ` s contrast this truo story anJ tho organization ` s
254 - pago omployoo hanJlook vith NorJstrom `s. \os, l
knov NorJstrom sooms to got vritton up in hall tho lusi-
noss looks out thoro, lut accorJing to TI~ N·:u:I:·u
Wu) co -author Polort Spoctor, that company `s hanJlook
isn ` t ovon ono lull pago. lt just says this:
WEICOVE TO NOPDSTPOV
Wo `ro glaJ to havo you vith our Company. Our numlor
ono goal is to proviJo outstanJing customor sorvico.
Sot loth your porsonal anJ prolossional goals high. Wo
havo groat conûJonco in your alility to achiovo thom.
NorJstrom Pulos: Pulo =1: Uso your gooJ juJgmont in
all situations. Thoro vill lo no aJJitional rulos.
Ploaso lool lroo to ask your Jopartmont managor, storo
managor, or Jivision gonoral managor any ouostion at
any timo.
Ono ol thoso organizations cloarly Jomonstratos that
it trusts you to Jo tho right thing, anJ trusts you to ask
lor guiJanco vhon you `ro not suro hov to lost moot tho
ovorall oljoctivos. Tho othor organization hanJs you 254
pagos ol policios, procoJuros, anJ rulos, most JosignoJ
to thvart that tiny porcontago ol omployoos vho can `t lo
trustoJ. As a star omployoo or potontial grovth loaJor,
vhoro voulJ you rathor sponJ 40 hours a vook?
Work is alout Jaily moaning as voll as Jaily lroaJ. lor
rocognition as voll as cash: lor astonishmont rathor than
torpor: in short, lor a sort ol lilo rathor than a VonJay
149
Why PeopIe Work
through lriJay sort ol Jying. Wo havo a right to ask ol
vork that it incluJo moaning, rocognition, astonishmont,
anJ lilo.
- StuJs Torkol, W·:Þ:u¤ (Panthoon Books, 19¯2)
lt ` s roally ouito simplo: Organizations ignoro tho roal-
ity ol vhy pooplo vork at thoir ovn poril. By tho vay,
Paul sont mo his rosumo to Jistriluto voll loloro tho onJ
ol his ûrst yoar.
MIx lt Upl
Pocognizo that pooplo vant to mako a lilo, not just a living.
Whon organizations honor inJiviJuals, Vilkshako Vomonts
locomo routino.
£xtra 7oppIngs
Recruit every day
Ask yoursoll, Will vinnors vant to vork horo? Hov Jo
vo croato a culturo, an onvironmont, anJ a roputation
that ollors vhat pooplo vant in vork? ` Pocruitmont isn ` t
a jol oponing: it ` s an organizational minJ - sot.
7rain every day
Training shoulJ lo a grovth initiativo, not a cost contor.
Grovth loaJors rocognizo tho importanco ol training not
just lor nov hiros, lut also lor oxisting vorkors (vhich
incluJos you, ly tho vay). IoaJor, loaJ thysoll.
( )
150
Admit tbat you Iive in a seIIer ' s market
Thoro aro not onough gooJ pooplo to go arounJ any-
moro. lor skilloJ omployoos, this is a sollor `s markot. Tho
Jays vhon pooplo voro clamoring lor an avorago jol
vith minimal grovth prospocts aro gono.
HandIe empIoyees Iike customers
ConsiJor all that timo anJ monoy your organization is
putting into customor acouisition anJ rotontion. At somo
point, you `ll nooJ to similarly invost in omployoos to
aJJross tho pooplo prollom` prollom. This is ono olvi-
ous aroa in vhich you Jo havo tho alility to Jiroctly
impact your organization ` s luturo chancos lor grovth.
SectIon 6
Care for Customers
( )
152
Thoro aro so many Jilloront kinJs ol organizations. Somo
sorvo customors. Somo sorvo clionts, vhilo othors sorvo
pationts, momlors, pupils, consumors, onJ usors, citizons,
policyholJors, parishionors, Jonors, patrons, shoppors.
l Jon`t knov vhat you call tho pooplo sorvoJ ly you anJ
your organization, lut l rocognizo that it mattors.
ll l start talking alout customors to a room lull ol Jon-
tists, thoy montally tuno mo out. Thoy Jon`t havo customors:
thoy havo pationts. l onco usoJ tho vorJ u::I::IuI·:: vith
a group ol computor harJvaro manulacturors anJ vas lator
inlormoJ thoy calloJ thom :~:~II~:: rst
ouostions l ask any organization that l vork vith is, What
Jo you call thoso you sorvo?` Olviously l can`t ask you, tho
cally vhat you call thoso you sorvo.
ln tho intorost ol somantic simplicity, l`m going to uso
tho vorJ cu:I·u~:. Ploaso Jo your lost to montally insort
your iJoal torm vhonovor tho vorJ cu:I·u~: appoars.
l olton ask loaJors ol organizations il thoy aro truly
customor Jrivon. Aro all tho procossos anJ procoJuros luilt
into your organization thoro to lottor sorvo tho customor?
lnvarially tho ansvor is an omphatic \os!` Organizational
loaJors truly loliovo that thoy aro highly customor Jrivon.
AnJ guoss vhat? l loliovo thom. l loliovo thoy aro
highly customor Jrivon, locauso thoy voulJn`t lo in
153
oxistonco in toJay`s compotitivo vorlJ il thoy voron`t.
Evoryono says, Wo lovo our customors.` Put that phraso
in Googlo anJ you`ll got noarly 50,000 rosults. \ou`ll got
anothor 40,000 lor Our customors lovo us.`
Tho moJorn organization oxists to sorvo customors.
Wo`vo all omlracoJ that concopt a long timo ago. Tho
cult ovory Jay to Jil-
lorontiato on customor caro.
Ono roason it has locomo harJor to stanJ out lrom
tho pack is that almost all organizations havo succosslully
prioritizoJ tho customor imporativo. Soriously, think alout
as Joos my local Dopartmont ol Votor Vohiclos (vhilo lar
lrom porloct, thoy aro light-yoars ahoaJ ol vhoro thoy voro
10 yoars ago). l can got my movio tickots printoJ, my Jry
cloaning pickoJ up, anJ my lunch JolivoroJ vithout ovor
loaving my computor. Evoryono is olloring a highor lovol ol
sorvico than ovor loloro.
lt`s also truo to say that tho lottor organizations got
at mooting customor nooJs, tho moro our oxpoctations
riso. ln olloct, vo`vo all locomo a lit spoiloJ. Tho truth
is, our customors havo novor haJ it lottor, yot thoy lool
oJ
in JomanJing it.
Care for Customers
154
lt`s toughor than ovor out thoro, anJ ovon tho lost
organizations strugglo to simply koop up vith thoir ovn rop-
utations. That is vhy Vilkshako Vomonts aro so important
lor grovth. No mattor hov customor-contric you loliovo your
organization to lo, thoro aro alvays opportunitios to lottor
caro lor customors.
155
Chapter 24
Home Team 0rops the 8all
WI·~:~: :: u:uu:u¤ uI II~ u·u~uI u:II uIuu):
:~~u I· I~ :u::uc:II~
- Goorgo Orvoll, 1946 ossay
As a toonagor groving up in tho north sulurls ol Atlanta,
my primary concorns voro cars, sports, anJ tho opposito
sox (not nocossarily in that orJor). \ot as my high school
graJuation Jay approachoJ, it vas harJ not to notico tho
oponing ol tvo varohousoliko rotail storos. Iong loloro
thoro vas a torm I:¤ I·., Homo Dopot pionooroJ a totally
nov vay to soll homo improvomont supplios. lounJors
Bornio Varcus anJ Arthur Blank oponoJ tho tvo storos
roJ lrom a largo chain ol traJitional harJvaro
storos.
By tho timo l graJuatoJ lrom collogo, l knov moro than
a lov pooplo vho haJ gono to vork lor Homo Dopot as
storo managors anJ voro nov millionairos locauso ol tho
rising stock prico. A lov yoars lator l lounJ mysoll to lo not
only a loyal customor, lut a prolorroJ vonJor as voll. By
this point tho vholo country haJ startoJ to soo orango.
Home Team 0rops the ßaII
156
Bornio anJ Arthur `s original concopt vas lrilliant. Ollor
tho consumor tho viJost soloction, tho lovost prico, anJ tho
lost customor sorvico. Evorything tho organization stooJ
lor rovolvoJ arounJ its customors anJ thoir ovolving nooJs.
Evon tho organizational chart put storo -lovol associatos in
tho top position. Tho lounJors rocognizoJ that tho socrot
to thoir succoss hingoJ on that porsonal connoction to tho
customor.
By 2000, tho chain haJ grovn to ovor 1,000 storos
anJ annual salos ol $46 lillion. ln loss than 20 yoars,
Homo Dopot haJ locomo tho nation `s soconJ - largost
ovorall rotailor. This motooric climl can lo Jiroctly attril-
utoJ to an unvavoring Jovotion to tho cult ol customor.
y in a straight trajoctory lorovor.
ln Docomlor ol 2000, tho lounJors hanJoJ ovor tho
roins to an outsiJor. Polort NarJolli vas a lormor loaJ
Jog at Jack Wolch `s Gonoral Eloctric. Whon Wolch rotiroJ,
NarJolli vas passoJ ovor lor tho top slot anJ jumpoJ
ship to locomo CEO ol tho groving Homo Dopot chain.
Wall Stroot analysts vonJoroJ hov an oxocutivo vithout
any rotail oxporionco vas going to laro, lut tho oconomy
tallo irrational oxuloranco ` anJ
NarJolli vas viJoly assumoJ to lo a ouick stuJy. What
coulJ possilly go vrong?
Almost lrom tho loginning, l startoJ to soo Jilloroncos.
lt logan vith lovor in -storo associatos. Iator l noticoJ a
157
littlo loss proJuct choico ovory visit. Chockout timos soomoJ
to stoaJily incroaso, too.
Jamaging than any othor. Whilo tho company vill Jony it
to this Jay, it soomoJ to mo that olJor, visor oxports voro
loing oJgoJ out in lavor ol youngor, loss oxporioncoJ sholl
stockors. Homo Dopot holpoJ popularizo tho phraso u· - :I -
)·u::~IJ (11î· I·u~ :uj:·:~u~uI. l can `t imagino that tho
original lounJors anJ loaJors onvisionoJ an ontiro Jo - it -
nJ
our ovn proJuct, Jrag it to chockout, scan tho lulky itoms
oursolvos, anJ thon lug it all lack to our vohiclo lor loaJ-
ing. Evontually, it soomoJ as il tho only orango apron in
sight vas sitting lohinJ tho contractors ` Josk -anJ l vasn `t
allovoJ to talk to thom.
By 2005, tho Univorsity ol Vichigan `s annual Amorican
Customor Satislaction lnJox shovoJ Homo Dopot haJ
slippoJ to JoaJ last among all major U.S. rotailors. ln tho
nancial
lackgrounJ), tho onco high - ying rotailor nov languishoJ.
Homo Dopot ` at lor tho six yoars
vhon Bol NarJolli loJ tho company, Jospito sovoral sharo
luylacks. At tho samo timo, tho stock prico at chiol com-
potitor Iovo ` s jumpoJ 230 porcont Juring his roign.
Criticism ol NarJolli roso among consumors, sharoholJ-
ors, anJ analysts aliko. AccorJing to ¹·. T·uu), ho pulloJ out
158
an ostimatoJ $360 million in total componsation Juring his
at
Thoro`s no Joult in my minJ that tho issuos sur-
rounJing Homo Dopot voro vory complicatoJ ovor tho
past lov yoars. Was tho chain ovorluilt? HaJ it roachoJ
markot saturation? What alout intornational opportunitios?
Acouisitions? Wholosalo markots? Pising intorost ratos? \ot
l still can `t imagino hov anyono in NarJolli `s position coulJ
loso sight ol tho ono thing that allovoJ Homo Dopot to
roinvont rotail. At Homo Dopot tho customor haJ alvays
loon king, anJ ly tho onJ ol NarJolli `s roign it appoaroJ
that tho customor vas holJ in contompt.
Anytimo you soo a homotovn toam grov to ovor
300,000 omployoos anJ vin lor so long, it `s harJ to vatch
a string ol losing soasons. This shoulJ lo a losson to any
organization: No mattor hov voll you aro Joing, ignor-
ing tho nooJs ol customors can voakon your organization
lastor than you can say rovorsillo coiling lan. `
Our lavorito organizations rogularly como to Jisappoint
us. NarJolli `
to Homo Dopot `s grovth. ln rocont yoars, vo `vo soon ovon
tho lost stumllo lor tho samo roasons: Doll, tho loJoral
Emorgoncy Vanagomont Agoncy (lEVA), almost any lig
Jomostic U.S. airlino. No organization, altor oxhiliting con-
tompt lor tho customor, is immuno lrom customor rovolts.
159
Oh, ly tho vay, NarJolli lanJoJ on his loot. Big Throo
automakor Chryslor hiroJ him as thoir CEO tho samo yoar
roJ lrom Homo Dopot. ll you Jrivo a DoJgo
pickup or a Plymouth minivan, you might vant to got a
tuno - up soon. Pumor has it that NarJolli `s sorvico Joalors
aro simply going to hanJ you a vronch anJ a rag loloro
too long.
MIx lt Upl
UnJorstanJ that your customors havo moro choicos than
ighty
ovors. Don `t allov
yoursoll to loliovo that your organization vill alvays lo
olJ.
Chapter 25
The 8Ig Secret to Creat
Customer ServIce
Wo can assumo that Homo Dopot loaJors novor consciously
saiJ, l knov, lot `s troat our customors liko crap anJ soo il
vo can put moro monoy into our ovn pockots! ` No, tho
laJ customor sorvico componont ol this story, anJ most liko
it, is moroly symptomatic ol a moro lunJamontal lailuro.
So, horo it is. Tho lig socrot to groat customor sorvico
is that . . .
1Þcrcno bIg sccrct to grcat customcr scrvIcc.
Aro thoro a lov littlo socrots? Prolally. Wo might ovon
havo alroaJy uncovoroJ a lov in oarlior chaptors. But il
you ` vo skippoJ straight to this chaptor in soarch ol an oasy
x or a magic lullot, it `s simply not that simplo. lully unJor-
stanJing tho provious soctions ol this look shoulJ holp
you login tho arJuous task ol luilJing a sustainoJ grovth
organization. Novor assumo lor a minuto that it `s going to
The ßIg Secret to Creat Customer ServIce
161
162
lo a straightlorvarJ or painloss pursuit. By luilJing a soliJ
organizational lounJation, truo loaJors aro most allo to put
pooplo in a position to Jolivor Vilkshako Vomonts.
Storo sholvos aro tooming vith looks on laJ customor
sorvico anJ hov to romoJy it. Somo aro ouito gooJ. Somo
aron`t. Hovovor, it sooms to mo, tho iJoa that customors
aro important is protty voll ingrainoJ in all ol us. Boing
rominJoJ that vo shoulJ smilo moro anJ ansvor tho
phono vith a can -Jo voico cortainly Joosn `t hurt anything.
\ot l maintain that vhon tho lost anJ lrightost pooplo aro
cloar on tho organization `s purposo anJ aro loJ ly thoso
thoy trust, gooJ attituJos (anJ sorvico) naturally lollov.
Wo all loarnoJ vith our lomonaJo stanJs as kiJs that
tho customor is alvays right. ` That statomont is mostly
truo. l Jon `t nooJ to list all tho potontial cavoats horo. Tho
unJorlying sontimont lohinJ this statomont is still as valiJ
toJay as it vas 50 yoars ago. That is to say, as lost vo
can, customors shoulJ lo maJo to lool that our organiza-
\ot vhon it comos to grovth, customors aro raroly
right. \our customors cannot toll you hov to grov your
organization. \our customors can `t ovon lully articulato
vhat you can Jo to sorvo thom lottor. l `vo sat in count-
loss locus groups anJ soon onJloss survoys that point in
ono Jiroction, only to vatch customors movo in oxactly
tho opposito Jiroction.
ln tho roal ostato inJustry l `vo olton hoarJ tho saying
Buyors aro liars. ` That is a protty harsh sontimont, lut
not altogothor untruo. Thoy Jon `t intonJ to lio. Usually
thoy simply havon `t haJ a chanco to lo honost vith thom-
solvos yot. \ou ask any customor or potontial customor a
Jiroct ouostion, anJ thoy vill givo you tho lost ansvor
thoy havo at tho momont. That Joosn `t moan it vill havo
any rolationship to vhat is ultimatoly right lor thom.
\os, gooJ customors shoulJ lo maJo to lool that thoy
aro alvays right in a ono - to - ono customor sorvico onvi-
ronmont. \ot lor you, tho grovth loaJor, it `s crucial to
unJorstanJ this:
The customer Isn ' t always rIght. but the customer Is
always human.
As harJ as it can somotimos lo to romomlor, custom-
ors aro just pooplo liko you anJ mo. AnJ locauso thoy aro
human loings, thoy ` ll Joo `s
ll Susan `s nooJs. Thoy
chango thoir minJs vithout ovon roalizing it. Thoy havo
laJ Jays anJ tako it out on us. Thoy ` cklo, thoy `ro lusy,
thoy ` ro in a hurry, anJ thoy `ro locusoJ on othor things
losiJos vhat you `ro locusoJ on. \ou livo your organiza-
tion all tho timo. Thoy oxporionco your organization lor a
ooting instant only vhon thoy roally nooJ you.
( )
The ßIg Secret to Creat Customer ServIce
163
164
Potor Druckor, tho lathor ol moJorn managomont,
saiJ ovor 50 yoars ago, Tho purposo ol lusinoss is to
croato anJ koop a customor. ` l `m suro ho `J havo no prol-
lom vith mo oxtonJing that sontimont to organizations
as a vholo. l Jon `t intonJ lor ono instant to Jovnplay
tho importanco ol tho customor sorvico lunction lor any
grovth organization. Vy point is simply this: ll vo intonJ
lor our organization to lo capallo ol Vilkshako Vomonts,
it vill tako much moro than having ovoryono attonJ tho
WI· M·:~u M) ·u:I·u~: : ·I:cÞ~u ··uj. sominar.
MIx lt Upl
Poinlorco tho notion that customor loyalty isn `t tho rospon-
silility ol a Jopartmont. Grovth loaJors luilJ ontiro organi-
zations that unJorstanJ customors lottor than customors
unJorstanJ thomsolvos.
Chapter 26
Even CenIuses Struggle to Serve
1I :: ·u: uuIu:uI I~uI I· :~c·¤u:z~ I·· IuI~ II~
u~c~:::I) J·: :~jI~u::I:u¤ IIuI uI:cI u~ ~.jI·:I
- William H. Whyto, TI~ ·:¤uu:zuI:·u Muu
(Simon 8 Schustor, 1956), Chaptor 16 ,
Tho light against Gonius `
Thoro aro plonty ol organizations out thoro that appoar
to oxist sololy to inluriato us. Go ahoaJ anJ sonJ mo an
o - mail rocounting your most riJiculous oxporionco vith
a major airlino, tolocom carrior, croJit carJ company, or
callo proviJor ( sourmilkshakos4stovonslittlo.com ).
Ploaso lool lroo to incluJo any storios rogarJing your
ghts vith city hall. l `ll ovon volcomo Jiatrilos railing
against schools, hospitals, or that charity that von `t ouit
calling your homo at Jinnor timo. Soriously, l lool your
pain anJ l knov it vill mako you lool lottor to got it oll
your chost. Wo loth knov that thoso typos ol organizations
aron`t roally going to liston to you. l promiso you l vill.
Even CenIuses StruggIe to Serve
165
166
lt ` - unlrionJly
organizations. Somo aro truly stupiJ, Jrivon ly pointloss,
muJJloJ thinking. But most aro miroJ in circumstancos
that voulJ mako ovon Allort Einstoin scratch his lushy
hoaJ. Tvonty yoars ago vo paiJ $1,000 lor a rounJ - trip
coach class tickot that nov costs $239, anJ yot vo `ro loss
oJ than ovor loloro. A coll phono call that usoJ
to cost Jollars nov costs ponnios, lut vo havo troullo
unJorstanJing vhy our costly tochnical ouostions aro rou-
tinoly routoJ lrom Topoka to Timluktu. ln my lilotimo it
has novor loon oasior to sulmit paymonts to tho lntornal
Povonuo Sorvico, lut l novor hoar pooplo spoaking highly
ol tho lPS `s sorvico lovol. Iot `s laco it -in somo vays
thoso organizations havo got it protty tough, loing lorcoJ
to Jo moro vith loss, only lastor.
Thoro`s no nooJ to rocount onJloss storios alout organ-
izations that vo all rocognizo aro challongoJ in tho sorvico
Jopartmont. Truth lo tolJ, thoy lully rocognizo tho prollom
too, sponJ an inorJinato amount ol timo anJ monoy trying
to roctily it, anJ still Jon `
thoro is actually much moro vo can loarn alout customor
caro-or lack thorool -lrom toJay `s most aJmiroJ organiza-
tions. Evon tho lost routinoly lorgot vho roally mattors.
Tako Applo, lor oxamplo. lt `s harJ to imagino an
organization having moro cachot vith its customors than
ios in tho
laco ol all tho gloving mythology surrounJing tho lranJ.
Visualizing vanilla milkshakos cortainly gots mo through
my ontiro lusinoss travol Jay. Hovovor, tho Applo iPoJ
c voapon against air travol
toJium. This littlo $¯9 gizmo holJs hunJroJs ol my lavorito
songs. lt `
or multihour tarmac Jolays. \ou can imagino my griol
ight to
Ias Vogas.
No prollom, ` ight attonJant.
Thoro`s an Applo storo in tho mall noar your hotol. Thoy
x it thoro. ` rst
priority tho noxt morning.
lirst improssions aro important, anJ this storo JazzloJ
mo. lt vas loautilul to look at: loautilul proJucts, loauti-
lul storo layout, anJ crovJoJ vith loautilul pooplo loth
vorking anJ playing. Hov groat is this? ` l thought. l lolt
liko l vas ontoring tho Jaytimo vorsion ol a slook nightclul.
l askoJ anothor patron hov ono goos alout gotting
sorvico anJ vas JiroctoJ to tho got - a - numlor systom locatoJ
at vhat Applo calls tho gonius lar ` in tho miJJlo ol tho
storo. l got my numlor. Tho hall hour vait vont ly ouickly
storo gaJgotry.
Numlor 5¯! ` l hoarJ somoono call out lrom lohinJ
tho lar. l racoJ ovor to tho countor, anxious to lring tho
music lack into my vorlJ.
167
168
Vy ovn porsonal gonius vas a smiling, lospoctacloJ
20 - somothing in a llack T -shirt that roaJ Gonius ` just in
o Jilomma anJ ho rosponJoJ, Not a prol-
lom, sir - vo ` ll havo you takon caro ol in no timo. ` Whilo
l vaitoJ lor tho onsuing hour - nish
nitions
ol in no timo ` apparontly JilloroJ. l lot Vr. Gonius knov
that l vas going to lotch a Cinnalon anJ an Orango
Julius anJ voulJ roturn Jiroctly.
Buzzing vith loth sugar anJ anticipation, l roturnoJ
to hoar tho gonius proclaim, lt ` s lrokon. `
Dazzling JoJuction, Boy WonJor, ` l thought lut JiJ
not say.
A ouick sorial numlor chock on my lrokon unit
o vas still
unJor varranty anJ ho vas authorizoJ to simply givo mo
a nov ono lroo ol chargo. lt vas not a porloct solution,
givon that l voulJ havo to roloaJ tho songs oll my laptop,
lut l vas gonuinoly improssoJ vith tho caro. Iot mo run
to tho lack, ` Vr. Gonius saiJ, anJ got you a roplacomont
unit. ` Wo voro nov tvo hours into this oxporionco, anJ
oJ.
Or maylo not. Vy nov lrovning gonius roappoaroJ
lrom tho lack to inlorm mo that thoy voro tomporarily out
169
os. Sir, can you como lack tomorrov?
Wo ` os tomorrov. `
l JiroctoJ his attontion to tho litorally Jozons ol
os stackoJ approximatoly 10 loot to my lolt,
in a rainlov ol tronJy colors. Hoy, horo `s a thought lor
you, ` l saiJ vith only tho laintost hint ol sarcasm. Why
Jon ` t vo just crack opon ono ol thoso loxos right horo
liltoon minutos lator, Boy WonJor `s loss, tho Supromo
CommanJor ol all in -storo goniusos, vas still trying to holp
o `s stock - kooping
unit (SKU) vas Jilloront lrom an in - o `s SKU.
lrom vhat my poa lrain coulJ gathor, thoy voro author-
izoJ to givo mo only tho lormor anJ not tho lattor. lt vas
nov loginning to cross my minJ that thoso soll - proclaimoJ
goniusos might not lo ouito as svilt as thoir shirts voulJ
havo us loliovo.
anJ a valiJ sorial numlor, lut thoy still coulJn `t Jolivor
an iShako. NooJloss to say, l roturnoJ to my hotol a lit
iPato. (Sorry, that ` s my last iPun - iPromiso.)
By any moasuro, Applo `s ontr oo into tho rotail soc-
tor has loon a monumontal succoss. Throo yoars altor
rst outlot, Applo Storos roachoJ $1 lillion
in rovonuo, lastor than any rotailor in history. ToJay salos
170
oxcooJ $1 lillion a ouartor. AccorJing to a 200¯ roport ly
inJustry analyst SanlorJ C. Bornstoin, Applo `s rotail tho
salos aro an astounJing $4,032 por souaro loot, lour timos
rotail salos ol Bost Buy, tho noxt -highost consumor oloc-
tronics rotailor. Tho monumontal succoss ol its rotail con-
copt holpoJ Applo attain a top 10 position vithin 1·:Iuu~
magazino ` s list ol most aJmiroJ companios. Iitorally no
ono Joos it lottor than Applo.
Dolivoring groat customor sorvico isn `t alout gotting
it right ovory timo. lnstoaJ, it `s alout gotting it right moro
olton - moro olton than your compotitors, moro olton than
it is oxpoctoJ, moro olton than you JiJ loloro. Applo,
vith no oxporionco in rotail, has cloarly gotton it right
moro olton than anyono, lrom storo Josign to hiring to
proJuct ollorings. Applo in many vays has rovolutionizoJ
vhat ` s possillo vith an in - storo shopping oxporionco.
So tho ouostion locomos: Was this ono laJ oxpori-
onco in oarly 200¯ an inconsoouontial lapso or a moro
important sign that tho Applo troo is loginning to lonJ
unJor tho voight ol its ovn grovth? Olviously, tho moro
storos that Applo opons, tho moro oxporioncos customors
vill havo, loth gooJ anJ laJ. Vaylo it moant nothing.
By tho summor ol 200¯, l coulJn `t holp lut notico
tho consumor lacklash lolloving tho incroJilly succosslul
introJuction ol tho Applo iPhono. Customor Jissatislaction
171
rangoJ lrom inaJoouato stock to a conlusing pricing stratogy
to luggy soltvaro upJatos that turnoJ many iPhonos into
vhat inJustry analysts logan to call iBricks. ` Wo nooJ to
Jo a lottor jol taking caro ol our oarly iPhono customors as
vo aggrossivoly go altor nov onos, ` saiJ Applo lounJor anJ
CEO Stovo Jols in an opon lottor that lall on tho company
vol sito. Our oarly customors trustoJ us, anJ vo must livo
up to that trust vith our actions. `
ll tho uniouoly succosslul goniusos at Applo aro capa-
llo ol losing customor locus, vhoro Joos that loavo tho
rost ol us morons?
lor tho tvonty rst -contury organization, yostorJays
Jon ` t mattor. Homo Dopot has como to loarn that tho harJ
vay. Tho Starlucks lranJ is an intornational juggornaut,
lut ovon tho lounJor anJ chairman has rocontly aJmittoJ
that tho Starlucks oxporionco ` has sulloroJ vith its rapiJ
oxpansion. Altor losing sight ol tho importanco ol trust,
ovon vonorallo institutions liko tho Amorican PoJ Cross
anJ tho Catholic Church havo managoJ to souanJor gon-
orations ol gooJvill.
Whoro voro tho truo loaJors vhon thoso organiza-
voulJ you havo loon tho organizational horo vho stops
up to say, lolks, vo havo a prollom horo that roouiros
our immoJiato attontion anJ action ` ?
172
Throughout this look, l `vo strossoJ that managors
simply managing von `t lostor grovth. lt takos loaJorship.
Onco tho grovth takos holJ, it takos a horo to triumph
ovor tho nov anJ soomingly impossillo challongos all
grovth organizations inovitally vill laco. Ultimatoly, your
customors roouiro horoos vho tako a stanJ anJ Jovoto
lling thoir luturo nooJs.
ll you Jon `t consiJor yoursoll to havo horo potontial,
romomlor that nono ol tho horoos vo `vo mot in this look
think ol thomsolvos as loing anything spocial, oithor. ln
thoir minJs, thoy ` ro just Joing tho right thing.
MIx lt Upl
ConsiJor that Joing tho right thing is almost alvays harJor
in practico than in thoory. Vilkshako Vomonts aro JolivoroJ
ly ovoryJay horoos vho stanJ up anJ mako a Jilloronco.
Chapter 27
Ìt Takes a Hero
Anothor horo ol mino vas lorn in 1908, in a mining camp
in northorn Alalama. His paronts haJ immigratoJ to tho
UnitoJ Statos lrom ScotlanJ, anJ young Tom vas tho lourth
ol an ovontual clan ol nino. Tho lamily movoJ arounJ ouito
a lit Juring Tom `s chilJhooJ, living in Alalama anJ lllinois
loloro ovontually sottling in southorn lnJiana. Iiko his
lathor anJ lrothors loloro him, ho ouit going to school at
tho ago ol 14 to join tho mon in his lamily Joop lolov tho
oarth ` s surlaco.
Ho rogularly vorkoJ 12 -hour Jays anJ 60 -hour vooks.
Tho jol vas loth tortuous anJ Jangorous. Although ho vas
novor caught in an oxplosion, his lrothors loro tho toll-
talo scars ol llasting acciJonts. Whon tho minos logan
to lo tappoJ out anJ vork locamo loss roliallo, a vork-
ors ` striko lollovoJ. \oung Tom lolt tho minos ono Jay at
tho ago ol 18 anJ vovoJ to himsoll that ho voulJ novor
roturn. To that onJ ho vont lack to his stuJios anJ oarnoJ
a high school Jogroo.
It Takes a Hero
173
174
Iuckily lor Tom, ho also haJ a gilt to lall lack on.
IogonJ has it ho coulJ pitch lack - to - lack nino -inning
gamos ol lasolall vithout losing any zip on his sliJor. His
athlotic provoss ovontually oarnoJ him a lull scholarship
to a small toachors collogo in Torro Hauto, lnJiana (nov
rst porson in
his lamily ovor to go to collogo.
Thoro Tom oxcolloJ in lour sports, running track anJ
playing lasolall in tho samo soason. Ho voulJ pitch an
inning, run ovor to tho track to compoto in tho high hurJlors,
anJ thon hoaJ lack to pitch tho lottom ol tho noxt inning.
Altor graJuation, Tom anJ his young vilo locamo
toachors. By 193¯ ho vas toaching liology anJ coach-
ing lootlall in tho capital city ol lnJianapolis. ln 1959 ho
locamo principal ol a largo high school in tho city - not
laJ lor a kiJ vho JroppoJ out ol school in tho oighth
graJo.
ToJay a portrait ol Tom rosiJos in tho auJitorium that
nov loars his namo at Hovo High School in lnJianapolis.
As a coach, a toachor, anJ an aJministrator, Thomas Stirling
vas a horo to tho community ho sorvoJ.
lor mo, ho vas a horo locauso ho vas my Pav - Pav,
my mothor ` cation
ol tho Amorican Jroam. Ho lolt us alout 10 yoars ago anJ
ho is groatly missoJ.
Vy horo Pav -Pav haJ his ovn horo, a man namoJ
John WooJon. As coachos, toachors, anJ lollov alumni
ol that small school in Torro Hauto, thoso tvo Hoosiors
camo to knov ono anothor. As a chilJ, vatching UCIA
Jominato tho gamo l lovoJ most, l can still romomlor my
granJlathor pointing to tho scroon anJ saying, Thoro is
tho man you vant to lo liko. `
Whon l askoJ Coach WooJon il ho romomloroJ my
granJlathor, ho saiJ, Oh, yos, l romomlor Tom. l romom-
lor Eva, too. ` (l guoss my granJma vas a lookor. ` )
Altor graJuating lrom PurJuo Univorsity, John WooJon
also vont on to oarn a toaching Jogroo lrom vhat is nov
lnJiana Stato Univorsity. Upon roturning lrom WorlJ War ll,
WooJon accoptoJ tho position ol loth athlotic Jiroctor
anJ hoaJ laskotlall coach at tho school. Coach WooJon
loJ tho scrappy Sycamoro hoopstors to a conloronco titlo
in 194¯ anJ an invitation to tho National Association ol
lntorcollogiato Baskotlall tournamont loing holJ in Kansas
City - a procursor to toJay `s National Collogiato Athlotic
Association (NCAA) championship.
At that timo, tho tournamont haJ a pointloss policy
lanning Alrican -Amorican playors lrom compoting. WooJon
rolusoJ tho invitation. ll you vantoJ WooJon `s toam, you
haJ to accopt tho vholo toam. Tho Sycamoros haJ ono
Alrican - Amorican playor, anJ WooJon voulJ novor havo
lolt ono momlor ol his toam lohinJ. l `ll lot tho young
It Takes a Hero
175
176
coach took plonty ol hits lrom loth alumni anJ lans lor
oJgling
program.
Olviously, looking lack nov, it vas tho right thing
to Jo, lut it must havo loon harJ lor othors to soo that
at tho timo. Coach WooJon vas guiJoJ ly a cloar moral
compass that coulJ novor lo svayoJ ly popular opinion.
Bo moro concornoJ vith your charactor than your ropu-
tation, ` ho onco saiJ. \our charactor is vhat you roally
aro, vhilo your roputation is moroly vhat othors think
you aro. `
Pomomlor in Chaptor 11 l tolJ you that Coach
WooJon lolt mo vith tvo lossons l ` rst
thing ho saiJ vas this: l novor sot out to vin champion-
ships. l alvays knov that l vantoJ to holp young pooplo
achiovo loyonJ thoir ovn oxpoctations ol thomsolvos.
Championships voro a ly -proJuct ol that ollort. ` But it vas
his soconJ losson that l `vo savoJ until nov. lt `s his soconJ
losson that truly rosonatoJ vith mo. lt `s amazing vhon your
horoos livo up to your highost oxpoctations.
During tho hoight ol tho civil rights unrost ol tho
ro vith racial
tonsion, WooJon ovorhoarJ a roportor ask ono ol his
Alrican - Amorican playors, Can you toll mo alout tho racial
prolloms on tho toam? `
177
It Takes a Hero
Tho playor roplioJ, \ou Jon `t knov our coach, Jo
you? Ho Joosn `t soo raco at all -ho just soos lallplayors. `
Tho young man turnoJ anJ valkoJ avay, olloctivoly
onJing tho intorviov. Vy horo tolJ that story to ovor a
thousanJ pooplo in Ios Angolos. Ho onJoJ ly saying,
l vas prouJ that Jay. ` Altor ho spoko, Coach WooJon tolJ
mo, ll that `s all l `m ovor romomloroJ lor, l `J lo okay
vith that. `
l havo an opinion. Vy opinion Joosn `t nocossarily
oct that ol my pullishor, my oJitor, or my lamily. lt ` s
just my opinion, anJ l oncourago you to tako it lor vhat
it is vorth.
l loliovo that vo livo in a groat nation. livo hunJroJ
yoars lrom nov or a thousanJ yoars lrom nov, l Jon ` t
think vo `ll lo romomloroJ lor capitalism or Jomocracy.
rst group
ol human loings to vrito a purposo -Jrivon plan that
incluJoJ tho vorJs, All mon aro croatoJ ooual. `
l ` m a political agnostic anJ an organizational grovth
roalist. l voulJ lo romiss il l JiJn `t sharo vith you somo
numlors that l think truly mattor. Whon this groat nation
vas lounJoJ, hall tho vorlJ lookoJ liko mo - Caucasian -
anJ hall tho vorlJ JiJ not. ToJay, 80 porcont ol tho vorlJ
Joosn ` t look liko mo anymoro. lorty porcont ol tho UnitoJ
Statos Joosn ` t look liko mo anymoro.
178
l suggost that you try to havo a 2020 vision ol tho
yoar 2050. l Jon `t knov il you `ll still lo arounJ ly thon. l
knov in 2050 l `ll lo oxactly Coach WooJon `s ago vhon
l mot him. l rocontly hoarJ a luturist proJict that ly 2050,
only 4 porcont ol tho vorlJ ` s population vill look liko mo.
ln my minJ, lor truo loaJors intorostoJ in grovth, it ` s
imporativo that vo Jo ovorything in our povor to lot-
tor unJorstanJ ono anothor. Wo must loarn hov to vork
vith pooplo vho Jon `t look liko us, Jon `t think liko us,
anJ Jon ` ning
issuo ol our timo.
Vy opinion is not a social or political commontary.
Pathor, it `s simply logic lasoJ on Jomographic shilts that
shov no signs ol altoring thoir courso.
You can ' t expect the unexpected. but you can master
the obvIous forces of change.
To mo, tho nooJ to lottor unJorstanJ giant lunJa-
montal shilts is as olvious as a milkshako.
MIx lt Upl
Tako a stanJ. Sustainallo grovth Joosn `t olton lollov tho
nJ a horo vho hasn ` t,
at ono timo or anothor, takon an unpopular position.
( )
Chapter 28
The Future Ìs Already Here . . .
Some Folks Just Aren ' t
CettIng the |emos
ln orJor to consistontly Jolivor Vilkshako Vomonts, it is
ossontial that you rogularly tako tho timo to stop lack
anJ oxamino tho olvious lorcos ol chango shaping tho
vorlJ.
As vo JiscussoJ oarlior, moJorn man has loon on this
planot lor roughly 200,000 yoars, anJ lor 99.9 porcont ol
that timo, vo voro protty much tho samo. \ot somohov, in
just tho past 100 yoars, ovorything alout tho human conJi-
tion has changoJ. Tho shilts in vhoro vo livo, hov vo livo,
anJ vho vo livo vith alloct litorally ovorything, incluJing
organizations. Who you hiro, vho you luy lrom, anJ vho
you sorvo havo rapiJly ovolvoJ anJ vill continuo to chango
lor tho rost ol your lilo.
Tho yoar 1900 vas pivotal in tho history ol mankinJ.
ln 1900, only 12 porcont ol tho vorlJ `s population livoJ in
a city ol moro than a million pooplo. By 1960, ono - thirJ
The Future Is AIready Here . . .
179
180
ol tho vorlJ `s population livoJ in a city ol ovor a million.
ToJay it `s noarly hall. By 2028, tvo -thirJs ol tho vorlJ ` s
population vill lo living in a city ol moro than a million
pooplo. Wo novor livoJ in citios lor approximatoly 200,000
yoars, lut somohov tho vast majority ol tho vorlJ vill
rosiJo in a motropolitan aroa vory soon.
ln 1900, tho lilo oxpoctancy ol tho avorago loy lorn
in tho UnitoJ Statos vas unJor 50 yoars. ToJay, oxports
proJict that tho avorago Amorican girl lorn this yoar vill
havo a lilo oxpoctancy ol ovor 100.
Vuch has loon maJo ol tho gonoral aging ol tho
population in tho UnitoJ Statos. But this cation `
isn ` t happoning only horo -tho tronJ is actually moro
pronouncoJ in Japan anJ Wostorn Europo. With aJvancos
in tochnology anJ moJicino, it `s not unroalistic to loliovo
that many 40 - yoar - olJs toJay vill livo anothor 100 yoars.
Sixtoon porcont ol tho curront U.S. population spoaks
rst languago. Chancos aro high that this
numlor vill oxcooJ 20 porcont in your organization `s lilo-
timo. Voro pooplo livo in just China anJ lnJia toJay than
livoJ in tho ontiro vorlJ in 1950. Domographic shilts liko
thoso alloct all organizations.
Wo livo in a timo vhon sciontists can cross an orl
voavor spiJor vith a Nigorian Jvarl goat anJ colllo
togothor a lullotprool vost lrom tho volliko protoins
181
oating vithin tho goat `s milk. A voman in Toxas spont
$ 50,000 to clono hor JoaJ kitty -cat Nicky. ` Tho vorlJ ` s
rst clonoJ cat haJ kittons (concoivoJ tho olJ - lashionoJ
vay) last yoar. As ol January 2008, glov - in - tho - Jark pigs
havo loon succosslully lroJ in Taivan.
Bioluols appoar poisoJ to ollor a roal solution to
shortagos ol lossil luols. Amoricans tonJ to soo gonotically
ciont susto-
nanco lor tho vorlJ. Europoans call this lrankonlooJ `
anJ loar it vill croato looJ -chain chaos. Eithor vay, changos
in liological scionco vill havo a tromonJous impact on
us all.
AnJ vhon it comos to tho luturo ol tochnology in an
inlormation ago, l agroo vith AnJy Grovo, co - lounJor
ol Silicon Valloy chipmakor lntol. Whon askoJ alout tho
luturo ol tochnology, ho tolJ 1u::u~::W~~Þ magazino that
vo can ` t ovon glimpso tho potontial. `
lncroasingly, gotting your organization to anothor lovol
vill lo alout loarning hov to tako aJvantago ol thoso
olvious ovolutions that loaJ to ovontual rovolutions. Whilo
much ol tho luturo may lio loyonJ your immoJiato viov,
it is crucial that you tako tho timo to rogularly consiJor tho
impact that thoso macro lorcos ol chango vill havo on you
anJ your organization. No ono can proJict tho luturo, lut
tvonty - rst -contury grovth loaJors aro lottor allo to soo
tho luturo ol thoir opportunity.
182
MIx lt Upl
Anticipato tho vorlJ `s changing nooJs. Thoroin lios tho
koy to luturo Vilkshako Vomonts.
£xtra 7oppIngs
Monitor ongoing cbanges
A tvonty - rst -contury grovth loaJor is liko a luturist. Onco
a lig nov thing hits your novslottors, traJo pullications,
or tho popular moJia, it is too lato lor you to capitalizo on
it. Iook lor tho ripplos ol chango on tho poriphory ol your
olJ ol vision.
Consider tbe potentiaI impacts of tbese cbanges
Tsunamis login as ripplos. Through oxporionco anJ visJom,
a loaJor can Jistinguish lotvoon tho ripplos that locomo
giant vavos ol chango anJ tho inconsoouontial ripplos that
croato only a small splash.
DeveIop a response
locomos, hov vill you chooso to riJo it? Grovth loaJors
sponJ tho majority ol thoir timo, monoy, anJ ollort on tho
opportunitios ol tomorrov.
( )
183
Make more miIksbakes
l moan this litorally. Whilo usolul as an analogy, tho milk-
shako is also a Jolicious lovorago troat. l oncourago you
to onjoy ono on a rogular lasis. lnJulging in lilo `s simplo
ploasuros can mako gotting out ol loJ a lot moro lun.
185
Index
A
AJJross tho pooplo prol-
lom` prollom, 18,
131-150
AJvorsity, loaJors` roaction
to, 125-128
Amorican omployoos, 66
Amorican Expross, OPEN
Jivision, 132
.u~::cuu ·:uJJI: (Vovio), 49
AnJorson, Charlio, 143
.u:uuI H·u:~ (Vovio), 49
Applo Computors, 166-1¯2
Approach, right:
grovth anJ, ¯9-83
in practico anJ
thoory, 1¯2
taking, 100
Associations, 31
Attrilutos ol grovth
loaJors, 32-36
Authonticity, 34-3¯
Automolilo inJustry,
85-86
B
Bohavior:
ol omployoos, 6-¯, 9-10
intolligonco anJ, 18
shocking, 39-4¯
Bornstoin, SanlorJ C., 1¯0
Boss, lroJ, 96, 98, 115-118
Bovorago inJustry, 121-123
BlaJo Transport, 142
Blank, Arthur, 155-156
Blass, Thomas, 41
186
BlinJ conlormity, 4¯
Books on grovth, 130
Businoss(os):
potontial ol, 31
purposo ol, 164
Businoss travol, 3-¯
1u::u~:: W~~Þ, 181
C
·uuu):IucÞ (Vovio), 49
Caro lor customors, 18,
151-183
Catch-22, 103, 108
·uIcI-22 (Hollor), 103
Challongo(s):
ol lroJ Boss, 115-11¯
organizations anJ, 34
rolatoJ to grovth,
125-128
Championship, 12-14
Chango:
anticipating anJ monitor-
ing, 1¯9-182
grovth loaJors anJ, 15
mastoring lorcos ol, 1¯8
in organizations, 88
pooplo anJ, 24
taking aJvantago ol,
116-11¯
Charitios, grovth lor, 20
cor
(CEO), avorago
oarning ol, 134
Circular logic concopt, 103
Coca-Cola, 122-123
Collalorativo approach
plan, 91-92
Communication, 15, 12¯
Community, caring alout,
142-144
Company-viJo talont, 134
Conlormity, 45-4¯
Customor(s). ·~~ uI:·
Customor sorvico
anticipating changing
nooJs ol, 1¯9-183
caro lor, 18, 152-183
grovth loaJors
anJ, 162
hanJling omployoos
as, 150
horoos anJ, 1¯2,
1¯3-1¯8
Homo Dopot anJ nooJs
ol, 155-159
organizational policy
anJ, 110-114
Customor satislaction, 153
187
Customor sorvico, 132
ol Applo Computors,
166-1¯1
lig socrot to, 161-164
Jocisions anJ, 109
in hospitality inJustry,
6-¯, 9-12, 55-5¯,
59-62
D
Docision(s):
customor sorvico
anJ, 132
grovth anJ, 129
pushing, 109
visJom anJ, 129
Dolta Air Iinos, 10¯
Disnoy, 105-10¯
Documontation, purposo-
Jrivon plan anJ, 93
Druckor, Potor, 28, 164
E
Ec·u·u::I, 134
Eisonhovor, Dvight, 93
Employoo(s):
Amorican, 66
lohavior ol, 6-¯, 9-10
ompovoroJ, 109
at Homo Dopot, 15¯
liko customors, han-
Jling, 150
purposo ol organizations
anJ, 66-6¯
ol WonJy`s lntorna-
tional, 10¯
EmpovoroJ omployoos, 109
Enlightonmont, ago ol, 2¯
EuI~:Iu:uu~uI W~~ÞI), 51
Environmont, locus on
croating, 49-54
Excalilur Vachino Co.,
lnc., 140-144
F
liolJ, AnJrov, 139
linancial managomont, 132
locus:
on croating an onviron-
mont, 49-54
on vorthy purposo,
¯3-¯¯
1·:Iuu~, 1¯0
lostor grov` :: status
ouo, 18, 23-63
lranklin, Bon, 2¯
lrioJman, Vichaol, 80
188
luturo, grovth loaJors anJ,
1¯9-182
G
Gillons, Potor, 50, 52
Goal sottings, 12¯
Going ·JJc~ ·juc~`, 51
GolJonhoim, Paul D., 80
Govornmont institutions, 31
·:~u:~ (Vovio), 49
Grovo, AnJy, 181
Grovth. ·~~ uI:· Grovth
loaJor(s)
looks on, 130
challongos rolatoJ to,
125-128
changos at Homo Dopot
anJ, 15¯-158
Jocisions anJ olstaclos
to, 129
nition anJ roouiro-
monts ol, 20-21
Joing tho right thing
anJ, ¯9-83
managors anJ, 19,
24, 1¯2
organizations anJ, 14,
20-21, 31, 125-128
purposo-Jrivon, 96-98
rosourcos as larrior
to, 13¯
sustainallo, 24, 1¯8
training anJ, 149
Grovth loaJor(s):
attrilutos ol, 32-36
chango anJ, 15, 1¯9-183
conlormity anJ, 45-46
alout customors,
163-164
juJgmont skills anJ, 102
mooting community
nooJs, 96-9¯
othor pooplo`s passion
anJ, 139-144
soizing opportunitios
anJ, 15
sonso ol purposo
anJ, 6¯
voulJ-lo, 19
H
Hartor, Vichaol, 125-128
Hollor, Josoph, 103, 106
Horo(os)
in Amorican culturo, ¯3
customors anJ, 1¯2,
1¯3-1¯8
189
Eric Hoovor as, 139-144
lascination ly, ¯0
taking a stanJ, 1¯3-1¯8
WizarJ ol WostvooJ as,
¯4-¯¯
Hill, lrank, 125
Homo Dopot, 108,
155-159, 1¯1
Homoostasis, 63
Hoovor, Eric, 139-144
Hospitality inJustry, 9-12
Hotol room sorvicos, 6-¯,
9-12
Human loings, Vilkshako
Vomonts anJ, 49-54
I
lnJiviJualism :: initia-
tivos, 114
lnJiviJuals, organizations
anJ, 28-29, 149
lnlormation ago, thinking
anJ, 63
lnitiativos :: inJiviJualism,
109li-114
lnsourco crucial juJgmont,
18, 102-130lr
lnstincts, lolioving in,
119-123
lntol, 181
lntolligonco, lohavior
anJ, 1¯
lntoraction, human loings
anJ, 55-5¯
lntoprint Tochnologios,
125-128
J
Jollorson, Thomas, 2¯
Jols, Stovo, 1¯1
JuJgmont, insourco crucial,
18, 102-130
JuJgmont skills:
honing, 128
K
Kollor, Holon, 98
L
Iancolot Construction, 142
IoaJor(s). ·~~ uI:· Grovth
loaJor(s): IoaJorship:
Vanagor(s)
aJvorsity as opportunity
anJ, 125-128
managors ::, 55-5¯,
59-63
190
IoaJor(s) (··uI:uu~u )
organizational, 152
roaJors anJ, 129-130
timo allocation ol, 32-33
transparont, 36
IoaJorship:
organizational grovth
anJ, 31
purposo-Jrivon, 98
Iittlo, Stovon:
lusinoss travol, 3-¯
omail aJJross, 165
on giltoJ grovth loaJors,
59-62
on loaJors :: managors,
55-5¯
on organizational poli-
cios, 105-108
TI~ 7 1::~JuIuII~ RuI~:
·J ·uuII 1u::u~::
·:·uII, 19
M
Van(agomont), history ol,
25-29
Vanagor(s), 33
grovth anJ, 19, 24, 1¯2
ol Homo Dopot, 108
loaJors ::, 55-5¯, 59-63
miJJlo, 8¯
Vilkshako Vomonts anJ,
28-29, 55-58
organizations anJ, 24
VanJatos, hiorarchical,
106-108
TI~ Muu :u II~ ·:u) 1Iuu-
u~I ·u:I (Wilson), 28
Varcus, Bornio, 155-156
Varkot, sollor`s, 150
Varkoting anJ salos, 132
M:uu:¤II E.j:~::
(Vovio), 49
Vilgram, Stanloy, 39-45
Vilkshako Vomonts:
Jark agos anJ, 2¯
noJ, 14
Jolivoring, 1¯2, 1¯9-183
lroJ Boss lostor ol,
116-118
human loings anJ,
49-54
managors anJ, 28-29,
55-58
matorialization ol, 14-15
olstaclos to, 18, 24, 28
passion alout vork as,
139-144
191
primary ingroJionts ol,
18-21
rational thinking as
ingroJiont ol, 45
VinJloss conlormity, 46
Vonoy:
rolo ol, 69
as root ol ovil, 83
Vovios, impact on roality,
49-50
Vulti-Tool lnc., 144
N
Naghoonanajar, Samir, 50
NarJolli, Polort, 156,
15¯-159
Navigational compass, 2¯
NooJ(s):
anticipating changing,
1¯9-183
prioritizing, 9¯-98
sonsitivity to
inJiviJual, 12¯
Nogotiation, 132
N~u î·:Þ T:u~:, 81,
123, 134
Ninotoonth contury, organi-
zations in, 2¯
NoClu Votors, lnc., 85-89
TI~ N·:u:I:·u Wu) (Spoc-
tor anJ VcCarthy), 148
O
·JJc~ ·juc~, 50-51, 52-53
TI~ ·JJc~ (TV sorios), 53
·u~ ·:~: II~ ·ucÞ··: N~:I,
51-52
Opportunity(ios):
aJvorsity as, 125-128
grovth loaJors anJ,
15, 182
loosing, ¯-8, 9-12
in organizations, iJonti-
lying, 89
Organizational purposo,
position anJ, 14
TI~ ·:¤uu:zuI:·u Muu
 Whyto, Nocora, anJ
Whyto), 28
Organization porson`,
20-21
Organization(s). ·~~ uI:·
Policy(ios),
organizational
chango in, 88
grovth anJ, 14, 20-21,
31, 125-128
history ol, 25-29
192
Organization(s) (··uI:uu~u)
iJontilying opportunitios
in, 89
kinJs ol, 152
managors anJ, 24
Vilkshako Vomonts
anJ, 18
outsourcing movomont
anJ, 102
pooplo as larrior to
grovth, 132-134
purposo ol, 66-6¯,
95-99, 145-146, 164
transparont, 36
Outsourcing, 102
Ovorachiovors, organiza-
tions anJ, 104
OxyContin, 80, 81-82
P
Passion, 69, 143-144
Pooplo:
chango anJ, 24
instilling sonso ol pur-
poso in, 6¯
as olstaclo to grovth,
132-134
roason to vork, 145-150
transparont, 36
unJorstanJing, 142-143
Pooplo prollom polka,
135-138
Potor Pan synJromo, ¯9
Pirko, Tom, 123
Plan, purposo in, 91-93
Policy(ios), organizational,
148
customors anJ, 110-114
making, participatory,
115-118
manuals, 129
roality anJ, 105-108
POV WonJorlul IIC,
121-123
Population, in tvontioth
rst
contury, 1¯9-180
Position, organizational
purposo anJ, 14
Positivo thinking, 33
PrintinglorIoss.com, 139
Printing pross, 2¯
Privato-soctor vorkors,
134
ProcoJuros, 106-108, 148
t, purposo loloro, 15,
18, 65-102
PurJuo Pharma, 81-83, 85
193
Purposo:
locusing on, ¯3-¯¯
grovth loaJors anJ
sonso ol, 6¯
ol organizations, 66-6¯,
95-99, 145-146, 164
in plan, 91-93
t, 15,
18, 64-102
Purposo-Jrivon grovth,
96-98
Purposo-Jrivon
loaJorship, 98
Purposo-Jrivo plan,
93, 1¯¯
R
Pational thinking, 45
PoaJors, loaJors anJ,
129-130
Poalistic attriluto, grovth
loaJors anJ, 33-34, 116
Poality, lacing, 34
Poason, ago ol, 2¯
Pocruitmont, 149
Posollors. ·~~ Customor(s)
Posnick, IynJa, 121-123
Posourcos, as larrior to
grovth, 13¯
Pozac, Darcy, 91
Pulos, 106-108, 148
S
School systoms, 31
Sollor`s markot, 150
Sonsitivo attriluto, grovth
loaJors anJ, 35, 116
Sorvicos, 95-98, 166-1¯2
TI~ 7 1::~JuIuII~ RuI~: ·J
·uuII 1u::u~:: ·:·uII
(Iittlo), 19
Sick Jays paymont, 134
Sipco VolJing Tochnolo-
gios, 144
Situational psychology,
39-41
SkilloJ vorkors, 134
Smart systom, 18
Spoctor, Polort, 148
Starlucks, 1¯1
·Iu: Wu:: (Vovio), 36
Status ouo, managing to
moot, 24
Stirling, Thomas, 1¯3-1¯4
Stuart, DaviJ, 44, 4¯
StupiJ systom, 18
Stylo, transparont, 12¯
194
Suporvisory rolos, 55
Sustainallo grovth, 21,
24, 1¯8
Svinglino, 51
1
Tochnology, luturo ol, 181
Tonsion, onorgy anJ,
28-29
Torkol, StuJs, 149
Thoyvontlotus virus, 88
Thinking:
inlormation ago
anJ, 63
organizational, 28
positivo, 33
rational, 45
Timoly attriluto, grovth
loaJors anJ, 32-33, 116
Toyota, 102
TPS roport, 51
TraJo associations, grovth
lor, 20
Training, grovth anJ, 149
Transparont attriluto,
grovth loaJors anJ,
35-36
Travols lor lusinoss, 3-¯
Trust:
authonticity anJ, 31-3¯
losing, 1¯1
in toams, 118, 12¯
Tvontioth contury:
organizations in, 15, 2¯
vorlJ`s population in,
1¯9-180
rst contury:
grovth loaJors, 182
organizations in, 1¯1
vorlJ`s population in, 180
2UUI. . ·juc~ ·u)::~)
(Vovio), 51-52
U
U. S. Buroau ol Ialor
Statistics, 133, 134
¹ · N~u: ô W·:Iu
R~j·:I, 9¯
U. S. population, 180
UJoll, HovarJ P., 80
UnJorporlormors, organiza-
tions anJ, 104
UnitoJ Statos, oconomy ol,
85-88
Univorsity ol Vichigan`s
Annual Amorican
195
Customor Satislaction
lnJox, 15¯
UnscriptoJ attriluto,
grovth loaJors anJ,
34-35, 116
¹·. T·uu), 15¯
V
ll, 134
Vacation Jays, 133
Vancouvor BoarJ ol TraJo,
91-93
VanJorlilt Bill Wilkorson
Contor lor Otolaryn-
gology anJ Com-
munication, 96-98,
115-118
W
WuII ·I:~~I {·u:uuI, 134
WonJy`s lntornational, 10¯
Wilkorson, Bill, 95-96
Wilkorson, Wosloy,
95-96, 98
WisJom:
aJvorsity anJ, 125-128
Jocisions anJ, 129
Tho WizarJ ol WostvooJ,
¯3-¯¯
WooJon, John, ¯5-¯¯,
1¯5-1¯¯
Working hours por vook,
133
W·:Þ:u¤ (Torkol), 149
WoulJ-lo grovth
loaJors, 19
Y
\ahoo!, 133
\ankolovich Partnors, 143
Z
Zoljak Auto Salos, 143
ZimlarJo, Philip, 39-45

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