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Copyrighted Material Index Accenture, London, 8 Bar code technology, 15, 16–17, 32, 92, Accountability: 140, 181–182 employee; for updating their Barksdale, Jim, 57, 137, 187 knowledge/skills bases, 103, Barnes, Thonda, 143 117–124 Bartosch, Henry, 178 metrics and, 11–12 BBQ picnic and contest, 166 Accounting (monthly book closing), Bell, Craig, 136 183–184 Benchmarking, FedEx used for, 43 Airbus A380, 197 Benefits, employee, 119–120, 142 Airplanes: Birkholz, Karl, 106–107, 147 deicing contingency, 177 Birla, Madan: flight scheduling, 159–161 career milestones, 20–22, 57, 69, on-time flights, complexity of processes 113 required for, 106–107 FedEx assignments/responsibilities, ownership milestone, 29 10–11, 105, 107, 135–136, 146, Air freight feasibility study, consultant’s 167 estimate of total market potential, 3 RCA Records, 9, 20, 21, 112 Airlines, passenger, 5–6, 38–39 retirement, 73 Airway bill vendors, 163–164, 165, 182 riding with couriers, 10–11 Albee, Roger, 182–183 Borstein, Leon, 101 Ally, Carl, 121 Boylan, Maureen, 189 Ally & Gargano advertising agency, 121 Brain/capability, right/left/whole, 70–71, Amazon.com, 36 102 Asia, 32 Bravo Zulu, 169, 176 Australia, FedEx, 83–84, 127, 189–190 Briscoe, James, 67 COPYRIGHTEDBroder, MATERIAL David S., 157 Balance: Bronczek, Dave, 146 doing/thinking, 147 Burnout, 74 innovation expectations/employees’ ability to deliver, 55–59 Cerf, Vinton, 71 life (see Work/life balance) Certification, professional, 108–109 predictability/change, 51–52 Chady, Ed, 121–123 Baldrige National Quality Award (1990), Chambers, Glenn, 170 33, 187 Chan, Marco, 53–54, 55 203 204 Index Charitable activities, 167, 189, 197 involving employees in developing Cheese, Peter, 8 implementation plans, 176, Chicago Business Service Center, 11 179–180 Churchill, Winston, 111 letting appreciation flow from the Circuit City, 105 heart, 176, 186–190 Civil Aviation Board (CAB), 30 listening to understand instead of Closing, monthly book, 183–184 listening to respond, 176, Coaching employees to “sell” their 183–186 creative ideas, 111–114 model context, 174, 190 Collaborative dimension, innovation overview, xxi, 78–80, 196 culture model, xxi, 75–77, 155–172, practical ideas, 190–191 196 Communication: celebration and fun, 77 call-in Q&A, 88 development, 75–77 engaging employees, 85–89, 99 examples: internal global television broadcast New Orleans convention business, system, 88 53–54 localizing the message, 87–88 public and private cooperation, India media, using variety of, 88 customs clearance, 54–55 newsletter from CEO/chairman, 88–89 lack of, as root cause of failure to officers/directors meetings, 86–87 achieve innovative culture, THQ 10 Rules of Growth (breaking the 52–55 silence), 77 leadership practices, 157 written, importance of, 57 breaking down hierarchical/ Community volunteer programs, 167 departmental barriers (silos) Competitive advantage, sustainable, 19 through social activities, Connecting the dots (outside-the-box 165–168 thinking), 68, 101–102, 103, 116 creating processes and infrastructure Convention business, New Orleans, for collaboration, 157, 161–165 53–54 leading by example; practicing Coop, Kay, 158–159, 160 collaborative problem solving, Corporate Performance Report, 184 157–161 COSMOS (Customers, Operations and recognizing/celebrating teamwork in Service Master Online System; developing ideas, 168–171 1979), 31 model context, 156, 171 Courier printer, 16 overview, xxi, 75–77, 196 Creativity: practical ideas, 171–172 defining, in the business world, 4–5 return on investment (ROI) and, 133 innovation and, 4 (see also Innovation) Commitment dimension, innovation “what if ” questions and, 62–64, 71–72 culture model, xxi, 78–80, 173–191, Cribbin, James, 46–47 196 Cross-functional teams, 163–165, 180 leadership practices, 176 Customer(s): building mutually trusting automated air waybill/document relationships, 176–179 preparation, 135–136 Index 205 COSMOS (Customers, Operations and Empathic listening, 185 Service Master Online System; Employee(s): 1979), 31 collaboration among (see Collaborative earlier deliveries for, 179–180 dimension, innovation culture expecting everyone to be involved in model) creating/keeping, 85, 89–94 committed (see Commitment FedEx paychecks printed with “a dimension, innovation culture satisfied customer made this model) possible,” 90–94 development (see Growth dimension, innovation driven by, 39–40 innovation culture model) satisfaction; goal of 100 percent, 90–92 engaged (see Engagement dimension, Service Quality Indicator (SQI), 91–92, innovation culture model) 95, 148 psychological need to feel that their telephone experience, 137–138 work matters and that they matter, value propositions, 85, 90, 94–96 168–169 Customs clearance, India, 54–55 rating managers, 186 recognition/appreciation of: DADS (Digitally Assisted Dispatch Bravo Zulu program, 169 System), 31 celebrating teamwork in developing Dalton, Harry, 13–14 ideas, 168–171 Dangerous Goods (DG) shipments, Five-Star Award, 16 113–114 publicizing individual and group Deicing airplanes, contingency, 177 efforts, 100 Delays, cost/impact of, 10, 26 tapping employee commitment, 176, Delivery vans: 186–190 electric hybrid, 197 relationship with managers, inverted first electronic communication system pyramid metaphor, 185–186 (1980), 31 secure environment for creativity (see Deming, W. Edward, 110 Secure-environment dimension, Demographics, changing, 149–153 innovation culture model) Department/manager objectives aligned survey feedback action (SFA), 117–118, with corporate PSP objectives, 94–95 130, 186 Deregulation of air cargo industry, FedEx Employment contract, levels 1–3, leadership role (1977), 30–31 142–143 de Vries, Manfred F. R. Kets (Life and Death Energy-saving initiatives, 197–198 in the Executive Fast Lane), 48–49 Engagement dimension, innovation Disney, Walt, 4, 7 culture model, xx, 64–67, 83–100 Door-to-door service, 6, 38–39 employee needs: “Dots” analogy (outside-the-box thinking), part of a winning team, 65–66 68, 101–102, 103, 116 making a difference, 66–67 leadership practices, 85 Ego interference, 134–135 expecting everyone to be involved in Einstein, Albert, 71, 130 creating and keeping customers, Eli Lilly, 74–75, 108 85, 89–94 206 Index Engagement dimension, innovation PSP (People, Service, Profit) culture model (Continued) philosophy, 9–13, 117, 123, 162, setting measurable goals for 188 improving your customer value revenue/market share, 1–2, 3, 22, 34 propositions, 85, 94–96 stock price, 2 sharing company’s strategies/goals in structure/areas, 2, 33, 156 plain/simple language, 85–89 success factors, key, 2–3, 193–194 telling employees regularly how they as a verb, 29 are making a difference, 85, volume, shipment, 22, 34, 149 96–99 FedEx innovation journey, 19–40 model context, 84, 100 Birla’s vantage point, 20–22 overview, xx, 64–67 continuum, innovation, 36–37 practical ideas, 99–100 growth milestones (1979 to 2001), 22–23 questions for leaders to answer, 66, hub and spoke air route system, 24–26 84–85 market- and customer-driven Esteem needs, 130 innovation, 39–40 Executives, survey of; on innovation, 8 operations nuts and bolts, 23–24 senior management’s role, 26–27 Facsimile delivery service (ZapMail), stakeholder involvement, 27–28 139–140 FedEx innovations, notable, 29–36 Failure, embracing potential for, 135, alliance with Amazon.com to meet the 139–141 needs of unprecedented sales FDX, ix phenomenon (2000), 36 Federal Express, ix alliance with U.S. Postal Service to Federal Reserve System, 5 place FedEx drop boxes at post FedEx: offices nationwide (2001), 36 acquisitions, ix, 33, 35, 97–98, asset utilization and system efficiency 113–114, 183–184 improvement (1997), 34–35 awards/recognition, 2, 22, 33, 193 COSMOS (Customers, Operations and benchmarking, used by other Service Master Online System, in organizations for, 43 1979), 31 founder (see Smith, Fred) delivery at 10:30 A.M. (1982), 32 industry created by, 1–2 deregulation of air cargo industry industry leadership, continuing, (1977), leadership role, 30–31 193–198 electronic communication system in innovation culture, 3 (see also delivery vans (DADS, Digitally Innovation culture model) Assisted Dispatch System, 1980), international operations/expansion, 31 32–33, 37–39, 97–99, 140, 175, FedEx Express, FedEx Ground, FedEx 183 Freight, and FedEx Kinko’s, 35 metrics, 11–12 integrated, seamless international and milestones, 22–23 domestic network (1989), 32–33 name, origin/evolution of, ix Malcolm Baldrige National Quality number of employees, 193 Award (1990), 33 operations, nuts/bolts, 23–25 online tracking (1994), 34 Index 207 ownership/operation of aircraft, holding employees accountable for package-sorting facilities and updating their knowledge/skills delivery vans (1973), 29 bases, 103, 117–124 packaging materials to meet specific participating in learning activities, customer needs—overnight letter 103, 115–117 (1981), 31 providing resources and support PC-based automated shipping system systems to facilitate growth/ (1984), 32 development, 103, 109–115 SuperTracker, hand-held bar code requiring employees to update/ scanner system (1986), 32 expand their knowledge/skill television advertising (1975), 29–30 bases, 103–109 “Feel” as key word in understanding model context, 102, 124 leadership process, 47 overview, xx, 67–71 Feiler, Lenny, 187–188 practical ideas, 124–125 Field visits, FedEx, 104–105 Growth milestones, FedEx (1979 to 2001), Finance division, 121–124 22–23 Finance Learning and Development Growth strategy questions, 66,
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