“The magic formula that successful businesses have discovered is to treat customers like guests and employees like people.” - Tom Peters

With annual budgeting season upon us, many organizations are facing the age-old question of cutting or spending their way to prosperity. Many businesses talk about the importance of growth yet allocate much of their planning time toward cost control initiatives. Yet, the celebrated stories of success rarely involved a sustained history of austerity. Business consultant Scott Edinger sums it up well in a Forbes article, “I believe strongly that we should attack waste, and there is often plenty of fat to trim. Unfortunately, many executives are so laser-focused on cost-cutting that they lose sight of their real objective: actual growth, not just the bottom line.”

Treating your clients well by investing in new and better solutions and attracting, growing, and retaining the best talent in the market can’t be accomplished through spending cuts. It requires investment.

In The Excellence Dividend, Peters pleads for leaders to over-invest in people and facilities. “Cost cutting is a death spiral,” he writes. That said, successful companies remain profitable over time.

Twenty years ago my wife and I were about one month into our new jobs after a cross country move to Arizona. I had just turned twenty-five and was figuring out the pecking order in the highly competitive sales focused culture of my new company.

Our firm was the dominant insurance provider in Phoenix. We worked with most of the major sports teams and that came with a reciprocal understanding that my company would be an active supporter of the teams through advertising and purchasing suites.

On Friday morning, September 24, 1999, news came that our office head had suffered a mild heart attack. He was going to be okay, which we were all thankful to hear. Not long after I observed many of our senior people huddling and excitedly talking about “the trip.” I got up from my desk to see what was going on.

According to Tom Peters, lunch is sacred. As he sees it, throughout the year we have “225 golden-never-to-be-repeated opportunities” to meet new people, learn new things, and build and nurture relationships inside and outside our organizations.

Okay, I like lunch as much as the next person. I fill my shared lunch hours with friends and colleagues whenever I can. But I’ve never thought of it as sacred. What gives?

“The only thing you have power over is to get good at what you do. That’s all there is; there ain’t no more!” – Sally Field

Even after four decades of writing and speaking on excellence, Tom Peters continues his impassioned plea on training with an entire chapter devoted to it in his most recent book The Excellence Dividend. He makes the point that you don’t achieve mastery during the game, while delivering the speech, or playing at the concert. Rather, “mastery is achieved only on the invisible preparation stage.”

As a performer, training should be your highlight, leaving the main event as an afterthought. When you think about it, success has essentially been decided before you even step on to the field or stage.

Writes Peters, “I find it interesting that many people I come across think they would make a great writer, actor, executive coach, seminar speaker, or even leader with little or no investment in training. Odd how they don't feel the same about neurosurgery, instrumentation design, and dentistry.”

“In my whole life, I have known no wise people - over a broad subject matter area - who didn’t read all the time. None. Zero.” – Charlie Munger, Vice Chairman, Berkshire Hathaway

When Tom Peters, author of The Excellence Dividend, speaks of reading, he’ll often label it as the “#1 deficit in CEOs.” For all the talk about how much successful CEOs do read, it may not be enough. Said Peters in a 2016 interview: “I like to think I’m a half step ahead of the pack. But about three years ago, with all the crap that’s going on, particularly with technology, I realized that I was 25 steps behind.”

Reading books is such an important tool to learn new things but also to test your understanding and beliefs. “I love them because they help us understand that we are not the brightest people in the world, and there are 80 million things to trip over when we’re making decisions,” Peters added.

Small & Medium Enterprises (SMEs) are the “purest manifestations of business excellence” according to business guru Tom Peters. “I love SMEs. They create the jobs and are responsible for most of the innovation in our country.”

It’s true. Small businesses, those with less than 500 employees, account for roughly half of private-sector employment. And since the Great Recession, SMEs have accounted for 67% of the net new jobs in the US.

“By experience we find out a short way by a long wandering.” ~ Roger Ascham

Author Tom Peters and his partner Bob Waterman first coined the term MBWA, or Managing By Wandering Around, in the 1980s after visiting Hewlett Packard as part of their research for In Search of Excellence. They noticed that the most successful organizations had leaders who spent a great deal of their time engaging with their teams. By being out in the field or on the factory floor they were closer to the action while building personal relationships with their people. This allowed for better and more efficient problem solving.

Nowadays with company workforces, business units, and even teams spread around the country, literally “wandering around” may not seem as practical. Yet MBWA is really a metaphor for being in touch with your employees, your partners, and your clients. “It’s the discipline of getting out of your office and getting close to where the work is really done,” says Peters.

“The sergeant is the Army.” ~ Dwight D. Eisenhower

As Tom Peters recounts in The Excellence Dividend, his early years in the Navy taught him how important “first-line chiefs” are to an organization. For Peters, “chiefs” is Navy-speak for Chief Petty Officers, the naval equivalent of sergeant in the Army.

“First-line chiefs are key #1 to organizational effectiveness and we invariably (way) underplay their collective importance,” writes Peters. “Not getting this is a strategic mistake of the first order.”

Frontline bosses are the main embodiment of corporate culture. They are the champions for excellence and enablers of sustained employee development.

“Execution will be one of the key differentiators going forward. Not just execution, but the speed at which new ideas and solutions can be deployed,” said my friend Larry Linne on a recent phone call. “It will be the thing that separates the winners from the losers.”

Larry and I were talking about the state of our industry and some friends in the business who decided to sell their firms. Larry is in a unique position to offer perspective on execution as he runs an advisory firm focused on helping insurance agencies maximize their potential. Larry and his team have expertise in operations, finance, and product development. They’re innovative and strategic, and also focused on training and implementation.

The thing Larry has noticed over the years is that when strategies fail, it’s usually due to poor execution. Many companies suffer a huge gap between great ideas and actual results.

Tom Peters, author of The Excellence Dividend, devotes the entire opening chapter to execution, calling it “the all-important last 95%.” Think about that for a minute. How many presentations have you been a part that pitched a new idea or strategy and barely touched on how it would be implemented? Guilty as charged. And yet Tom says all that ideation is only the first 5%! Leaders must prioritize the “how” of execution going forward.

It’s said that most adults will spend one third of their life at work. That’s roughly 90,000 hours! Putting it in these terms provides a different context in which to view the employer-employee relationship.

Author Tom Peters says leaders need to accept responsibility for the role they play in employees’ lives. “Every leader has a moral obligation [today] to develop people so that when they leave, they are better prepared for tomorrow than when they arrived,” writes Peters.

That’s heavy. I care about our people a lot. I think about the 150+ families relying on our leaders to make good decisions with the best interest of our team at heart. Yet “moral obligation” is an even larger burden. And you know what? He’s right. We owe that to our team.