1. LONG Tom Peters’ X25*: EXCELLENCE. ALWAYS. Rompetrol/Annual Management Meeting Paris/02 December 2006 *In Search of Excellence 1982-2007

2. tompeters.com Slides at … tompeters.com

3. EXCELLENCE. ALL. YOU. NEED. TO. KNOW.

4. 25

5. 7X. 730A- 800P. F12A. * 7X. 730A- 800P. F12A. * * ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

6. Wegmans

7. EXCELLENCE. ALL. YOU. NEED. TO. KNOW. ANYWHERE. ANY MARKET. ANY TIME.

8. Jim’s Group

9. EX-CELL- ENCE. NOT.

10. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

11. 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987. 74 12 “Forbes100” from 1917 to 1987 : 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987. S&P 500 from 1957 to 1997 : 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

12. Top 100 7 half 30 Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in 2004. The 1997 crisis “destroyed half of Korea’s 30 largest conglomerates.” Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

13. Low Risk 41% 13% High Risk35% 73% S&P Stability Ratings* 1985 2006 Low Risk 41% 13% Average Risk 24% 14% High Risk 35% 73% *Likelihood of stable long-term earnings growth Source: Fortune (2 October 2006)

14. The last word: There is no last word.

15. Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE

16. “It is generally much easier to kill an organization than change it substantially.” —Kevin Kelly, Out of Control

17. C.E.O. C.D.O. C.E.O. to C.D.O.

18. “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” —Kevin Kelly, New Rules for the New Economy

19. EXCELLENCE. STARTERS. BASICS. K.I.S.S.

20. Raging Success = P-SQUARED. C. E-CUBED.

21. People. Product. Clients. Execution. Enthusiasm. Excellence.

22. EXCELLENCE. THE WORD.

23. Purity Transcendence Virtue Elegance Majesty Synonyms Purity Transcendence Virtue Elegance Majesty Antonyms Mediocrity

24. EXCELLENCE. GAMECHANGER.

25. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties” Properties”

26. EXCELLENCE. ASPIRATION.

27. “Why in the world did you go to Siberia?”

28. Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow. The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow.

29. “excellent” An emotional, vital, audacious, innovative, joyful, frightening, risky, creative, entrepreneurial endeavor that breathes life & fire into our work & life & elicits maximum concerted human potential Business* (*at its “excellent” best) can be: An emotional, vital, audacious, innovative, joyful, frightening, risky, creative, entrepreneurial endeavor that breathes life & fire into our work & life & elicits maximum concerted human potential in the wholehearted effort to help others ** succeed & profit & imagine & reach places they’d never dreamed they could go. in the wholehearted effort to help others ** [**employees, clients, suppliers, communities, owners, temporary partners] succeed & profit & imagine & reach places they’d never dreamed they could go.

30. The Ultimate Creative Endeavor. Business: The Ultimate Creative Endeavor.

31. The Ultimate Personal Development- Growth Experience. Business: The Ultimate Personal Development- Growth Experience.

32. The Ultimate Transcendent Service Opportunity. Business: The Ultimate Transcendent Service Opportunity.

33. To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” “To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson

34. “Astonish me!” “Build something great!” “Make it immortal!” “Insanely great” (SJ) “Astonish me!” (SD). “Build something great!” (HY). “Make it immortal!” (DO) “Insanely great” (SJ)

35. “ In-sane- ly-great”

36. EXCELLENCE. “THEM.” “US.” EXCELLENCE. “THEM.” “US.”

37. EXECUTION Action Selling/Sales Customers Clients Big Stuff (Women, Boomers) Revenue maximization Decentralization Pioneering supplier Project Excellence Women Management + Leadership Exceptionalism (53 = 53) COOL clients INTERESTING Board “Them” “Us” Strategy EXECUTION Planning Action Marketing Selling/Sales Markets Customers Customers Clients Micro-segmentation Big Stuff (Women, Boomers) Cost minimization Revenue maximization Synergy/“Efficiencies” Decentralization “Strategic” supplier Pioneering supplier Process Project Effectiveness Excellence Men Women Leadership Management + Leadership Standardization Exceptionalism (53 = 53) Big clients COOL clients Prestigious Board INTERESTING Board

38. Mid-size Organic growth Create NEW markets Value-creating “PSF” Ambiguity-opportunity Aggressive pursuit of winning Prototype Another prototype Another prototype Talent Rockin’ Talent Development Center of Excellence Benchmark against the “coolest” “Them” “Us” Big Mid-size Growth by merger Organic growth Buy market share Create NEW markets Efficient, streamlined Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunity Fearful of losing Aggressive pursuit of winning Plan Prototype Careful evaluation Another prototype Revised plan Another prototype People/Employees Talent Effective HR department Rockin’ Talent Development Center of Excellence Benchmark against the Benchmark against the “best”-“industry leader” “coolest”

39. “Future”mark “Up or Out” (PDQ) Heart EQ Passionate Noisy, emotional “characters” in charge Hire for intangibles Relentless, pig-headed determination Teamwork and disruptive individuals equal billing Lead customers Intimate-Seamless customer inter-twining “Them” “Us” Benchmark “Future”mark Orderly career progression “Up or Out” (PDQ) Head Heart IQ EQ “Professional” Passionate Stoic, humble leaders Noisy, emotional “characters” in charge Hire for Resume Hire for intangibles Measured-thoughtful Relentless, pig-headed approach determination Teamwork comes first Teamwork and disruptive individuals equal billing Listen to customers Lead customers Customer “involvement” Intimate-Seamless customer inter-twining

40. MBWA MFA Great people-product rule Work hard Built to Rock the World Reward (EXCELLENT) failures Design 1T Innovation 1T Jaw-dropping Experience CVs feature Magic Moments Cool stuff World-rocking INNOVATION “Them” “Us” MBM (Management MBWA by memo) MBA MFA Shareholder Value Great people-product rule comes first Work smart Work hard Built to last Built to Rock the World Reward successes Reward (EXCELLENT) failures Quality first! Design 1T Quality first Innovation 1T High-quality Jaw-dropping Experience transaction CVs demo consistent CVs feature Magic Moments performance Good grades Cool stuff Operational excellence World-rocking INNOVATION

41. Lovemark Best STORY wins Politics-is-life, the rest is details Bestsource Send on QUESTS Invite HOT language Gamechanging SOLUTION, Thrilling EXPERIENCE, DREAM come true, LOVEMARK Technicolor Different “Mission EXCELLENCE” EXCELLENCE. ALWAYS. “Them” “Us” Brand Lovemark Best analysis wins Best STORY wins “Beyond politics” Politics-is-life, the rest is details Outsource Bestsource “Motivate” Send on QUESTS “Motivate” Invite Measured language HOT language Product-Service Gamechanging SOLUTION, Thrilling EXPERIENCE, DREAM come true, LOVEMARK Pastel Technicolor Better Different “Mission success” “Mission EXCELLENCE” Very good EXCELLENCE. ALWAYS.

42. EXCELLENCE. DEFINED.

43. EXCELLENCE. DEFINED. AGENDA. SETTER.

44. SET THE AGENDA Great Companies … SET THE AGENDA.* (PERIOD.) * “disturb the sleep of …

45. US Steel … Ford … Toyota … Sears … GM … ITT … The Gap … Limited … Wal*Mart … Tesco … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Microsoft … Google … Enron … Schwab … GE … Laker … Southwest … People Express … Ogilvy … Virgin … eBay … Amazon … Sony … Amgen … BMW … CNN … Nike AGENDA SETTERS: “Set the Table”/ Pioneers/ Questors/ Adventurers US Steel … Ford … Toyota … Sears … GM … ITT … The Gap … Limited … Wal*Mart … Tesco … P&G … 3M … Intel … IBM … Apple … Nokia … Cisco … Dell … MCI … Sun … Microsoft … Google … Enron … Schwab … GE … Laker … Southwest … People Express … Ogilvy … Virgin … eBay … Amazon … Sony … Amgen … BMW … CNN … Nike

46. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.” Built to Last vs Built for Impact “But what if [former head of strategic planning at Royal Dutch Shell] Arie De Geus is wrong in suggesting, in The Living Company, that firms should aspire to live forever? Greatness is fleeting and, for corporations, it will become ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a stockbroker may be to explode in a dramatic frenzy of value creation during a short space of time, rather than to live forever.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

47. Netscape! Where would you rather have worked for those 5 years TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)

48. Built to Change/Rock the World Built to Last vs Built to Change/Rock the World

49. GM 25 /50-75: “Built to last”????

50. “Life is occupied in both perpetuating itself and in surpassing itself. If all it does is maintain itself, then living is only not dying.” “Life is occupied in both perpetuating itself and in surpassing itself. If all it does is maintain itself, then living is only not dying.” —Simone de Beauvoir “… Longevity has its place, but I’m not concerned about that now. I just want to do God’s will, and He’s allowed me to go up the mountain. And I’ve looked over. And I have seen the Promised Land. And I don’t mind. … I may not get there with you. …” And I don’t mind. … I may not get there with you. …” —MLK/Memphis

51. “ In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” “ In Tom’s world, it’s always better to try a swan dive and deliver a colossal belly flop than to step timidly off the board while holding your nose.” —Fast Company /October2003

52. EXCELLENCE. INNOVATE. OR. DIE.

53. “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin

54. EXCELLENCE. INNOVATE. ALL. WRONG.

55. “ I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/Wells Fargo

56. #1 More than $$$$ #1 R&D spending, last 25 years?

57. GM

58. “When asked to name just 1 big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’” —Mark Sirower, The Synergy Trap

59. “Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.” —Jim Collins/Time/2004

60. “A” “A.” There’s “A” and then there’s “A.”

61. Spinoffs “freed from the confines of the parent … more entrepreneurial, more nimble Spinoffs systematically perform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble” —Jerry Knight/ Washington Post/ 08.05

62. Freescale Semiconductor $16B Free at Last: Most Recent Chapter in a Long-running Saga Freescale Semiconductor* *$16B

63. Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, “skin in the game” *CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, “skin in the game” *CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight *Worst case: Rape & Pillage

64. EXCELLENCE. INNOVATE.. EXCELLENCE. INNOVATE. TACTICS.

65. We become who we hang out with!

66. Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board

67. “Are there enough weird people in the lab these days?” Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director

68. Get mad. Do something about it. Now.

69. Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)

70. The Bottleneck Is at the Top of the Bottle” At the top!” “ The Bottleneck Is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma: At the top!” — Gary Hamel/Harvard Business Review

71. futuremark

72. Two- thirds of the time, they pick the wrong competitor to worry about.” “How do dominant companies lose their position? Two- thirds of the time, they pick the wrong competitor to worry about.” —Don Listwin, CEO, Openwave Systems/WSJ

73. Kodak …. Fuji GM …. Ford Ford …. GM IBM …. Siemens, Fujitsu Sears …. Kmart Xerox …. Kodak, IBM

74. “Don’t benchmark, futuremark!” “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

75. Concoct a Parallel universe!

76. 1% “SkunkWorks”/ “ParallelUniverse” “the 1% solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

77. “Venture” fund: “Venture” fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks

78. Forward, march: The “Sri Lanka Stratagem”

79. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.

80. you only find oil if you drill wells. “ This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter

81. “We have a ‘strategic plan.’ It’s called doing things.” “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher

82. “Experiment fearlessly” “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

83. “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version # 5. By the time our rivals are ready with wires and screws, we are on version ready with wires and screws, we are on version # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg

84. “We ground up more pig brains!”

85. READY. FIRE! AIM. READY. FIRE! AIM. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)

87. “You miss 100 percent of the shots you never take.” —Wayne “You miss 100 percent of the shots you never take.” —Wayne Gretzky

88. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

89. tolerate [encourage?] failure

90. Sam’s Secret #1!

91. “Reward Punish “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

92. “FAIL, FAIL AGAIN. FAIL BETTER.” “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett

93. “Fail. Forward. Fast.” “Fail faster. Succeed Sooner.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania “Fail faster. Succeed Sooner.” David Kelley/IDEO

94. do! Addendum!

95. “Action is the foundational key of all success.” —Picasso

96. “The secret of getting ahead is getting started.” — Agatha Christie

97. “The secret to having good ideas is to have a lot of ideas, then throw the bad ones away.” “The secret to having good ideas is to have a lot of ideas, then throw the bad ones away.” —Linus Pauling

98. Translating Picasso “ Doing something is the key to getting something done.” “A BIAS FOR ACTION” Translating Picasso “ Doing something is the key to getting something done.” —TP (Co-author, In Search of Excellence, first “Basic”: “A BIAS FOR ACTION”)

99. “Intelligent people can always come up with intelligent reasons to do nothing.” —Scott Simon

100. Speed/ Tempo

101. We sell speed.” “We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

102. place big bets

103. No Wiggle Room! “Incrementalism is innovation’s worst enemy.” No Wiggle Room! “Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

104. Big Big “ Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

105. Five MYTHS About Changing Behavior *Crisis is a powerful impetus for change *Change is motivated by fear *The facts will set us free * Small, gradual changes are always easier to make and sustain *We can’t change because our brains become “hardwired” early in life Source: Fast Company/05.2005

106. focus

107. “We will not, I repeat not, pretend to be ‘all things to all people.’” “We will not, I repeat not, pretend to be ‘all things to all people.’” —CEO, Investec (03.06)

108. Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, “skin in the game” *CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight Private Equity-financed Firm, Best *Case *Focus! Focus! Focus! *In a [Big] hurry *CEO/Top team, “skin in the game” *CEO, 100% of time on the biz *Merit! Merit! *Motivated oversight *Worst case: Rape & Pillage

109. measure

110. Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Profound”/ “Amazing”/“Game- changer” Scale?

111. personal

112. Buy a Mirror! Step #1: Buy a Mirror!

113. re-imagine the “value added” equation

114. $55B

115. “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004

116. Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

117. Gamechanging Solutions/ Implemented Customer culture change & success The [NEW] “Value-added Ladder” Gamechanging Solutions/ Implemented Customer culture change & success Services/Transactions Manufactured Goods/Things Extracted Raw Materials/Stuff

118. PSF

119. Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

120. “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

121. “What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership

122. spellbinding Experiences Gamechanging Solutions The [NEW] “Value-added Ladder” spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

123. Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

124. Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions

125. Dreams Come True Spellbinding Experiences Gamechanging Solutions The (NEW) Value-added Ladder Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

126. Dream Merchants : IBM UPS

127. EXCELLENCE. 1966. 2006.

128. 4/40

129. De-cent- ral-iz- a-tion!

130. “If if feels painful and scary—that’s real delegation” “If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner

131. “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” — Brian Joffe/BIDvest

132. 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s

133. Ex-e- cu-tion!

134. “ Execution is the job of the business leader.” —Larry Bossidy “ Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

135. systematic process “ Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

136. Projects = Goal (“Vision”) Milestones = Project Rapid Review + Truth-telling = accountability

137. The X-squared Axiom: X = X eXcellence = eXecution

138. Ac-count- a-bil-ity!

139. “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” —Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

140. “ Realism is the heart of execution.” “ Realism is the heart of execution.” —Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

141. 6:15A.M.

142. 4/40: De-centralization execution accountability 6:15a.m.

143. ORIGINS OF SUSTAINABLE ENTREPRENEURSHIP Excellence: The SE22: ORIGINS OF SUSTAINABLE ENTREPRENEURSHIP

144. SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft, CitiGroup, PepsiCo) Microsoft, CitiGroup, PepsiCo) 8. “Culturally” as well as organizationally Decentralized (GE, J&J, Omnicom) (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)

145. Innovation = DisDis (*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and try a lot of weird stuff, the odds of getting lucky go up remarkably) (**Career success depends on convincing others that you knew what the hell you were doing all along. Good news: Say it long enough and you will believe it. Great news: Keep saying it and you, too, can become a “guru.”) TP “Lessons Learned” Innovation = DisDis (Disciplined Disorganization) Luck is a very good thing.* ** (*More “lessons” later: E.g., If you hire a bunch of disciplined weirdos and try a lot of weird stuff, the odds of getting lucky go up remarkably) (**Career success depends on convincing others that you knew what the hell you were doing all along. Good news: Say it long enough and you will believe it. Great news: Keep saying it and you, too, can become a “guru.”)

146. SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners— especially exciting start-ups (Pfizer) especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … don’t obsess on how it “fits the business model.” (3M, J & J) how it “fits the business model.” (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/“No limits” approach to retaining top talent (Virgin, GE, PepsiCo ) retaining top talent (Virgin, GE, PepsiCo )

147. SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) Corp/Fox, PepsiCo) 21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else Core Values, Open-minded about everything else (Virgin) (Virgin)

148. EXCELLENCE. BEDROCK. TALENT.

149. Hire very good people!

150. 20 40 $25$802 “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” —Ed Michaels, War for Talent

151. INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

152. invites “In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

153. is free to do his or her absolute best.” allow its members to discover their greatness.” Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

154. “free to do his or her absolute best” … “allow its members to discover their greatness.” Leadership’s Mt Everest/Mt Excellence “free to do his or her absolute best” … “allow its members to discover their greatness.”

155. EMPHASIZE THE “SOFT SKILLS.”

157. “It’s simple, really, Tom. Hire for s, and, above all, promote for s.” “It’s simple, really, Tom. Hire for s, and, above all, promote for s.” —Starbucks middle manager/field

158. “The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb people. But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” “The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb people. But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” —Larry Bossidy (Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done)

159. Each hired and developed and evaluated in unique ways Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W Delta events = Delta rosters A Few Lessons from the Arts Each hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators) Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” (G Leonard/Mastery) Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W. (everything) Delta events = Delta rosters (incl leader/s)

160. PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION.

161. A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. Putting HR on a par with finance and marketing. Second: Putting HR on a par with finance and marketing.

162. DD$21M

163. SO YOU’RE A “PEOPLE PERSON”? PROVE IT.

164. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” —Warren Bennis & Patricia Ward Biederman, Organizing Genius

165. “Connoisseur of Talent” PARC’s Bob Taylor: “Connoisseur of Talent”

166. SO YOU’RE A “PEOPLE PERSON”? PROVE IT.

167. People! People!

168. LIVE FOR TALENT!

169. To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

170. Portfolio Thinking G.M. (Brand Yous) V.C. (Wow Projects!) M.B.S.A. (Demos. Heroes. Stories.)

171. Internal “brand promise”!

172. EVP/ IBP What’s your company’s … EVP/ IBP?* *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP

173. EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, The War for Talent; TP

174. Brand = Talent.

175. Re-imagine People Power: The Talent 50 Re-imagine People Power: The Talent 50

176. 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/Intellectual- capital Added. 4. Talent “excellence” in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is “cool.” The Talent50 1. People first! 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/Intellectual- capital Added. 4. Talent “excellence” in every part of the organization. 5. P.O.T./Pursuit Of Talent = Obsession. 6. HR sits at The Head Table. 7. HR is “cool.”

177. 8. Re-name “HR.” (Talent Department, Center of Talent Excellence) 9. There’s an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a “world class” Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The “Top100,” and every unit’s Top10, are consciously managed. The Talent50 8. Re-name “HR.” (Talent Department, Center of Talent Excellence) 9. There’s an HR Strategy 10. There is a FORMAL Recruitment Strategy. 11. There is a FORMAL Leadership Development Strategy. 12. There is a “world class” Leadership Development Center. 13. There is a FORMAL-STRATEGIC HR Review Process. 14. The “Top100,” and every unit’s Top10, are consciously managed.

178. The Talent50 15. “People/Talent Reviews” are the FIRST reviews. 16. HR Strategy = Business Strategy. 17. Make it a Cause Worth Signing Up For.. 18. Set Sky High Standards. 19. Enlist everyone in Challenge Century21. 20. Pursue the Best! 21. Up or Out. 22. Ensure that the Review Process has INTEGRITY. 23. Pay!

179. 24. Training I: Train! Train! Train! 25. TII: 100% “business people.” 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual. The Talent50 24. Training I: Train! Train! Train! 25. TII: 100% “business people.” 26. TIII: 100% Leaders. 27. TIV: Boss as Trainer-in-Chief. 28. Open Communication I: NO BARRIERS. 29. Open Communication II: Share Information. (ALL!) 30. Respect! 31. INTEGRITY! 32. Treat the Whole Individual.

180. 33. Places of “grace.” 34. MBWA: The “Rudy Rule.” 35. Thank You! 36. Promote for “people skills.” (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring. The Talent50 33. Places of “grace.” 34. MBWA: The “Rudy Rule.” 35. Thank You! 36. Promote for “people skills.” (ALL ELSE IS SECONDARY.) 37. Honor youth. 38. Early leadership assignments. 39. Fast Tracking is the norm. 40. Create a System of Mentoring.

181. 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses “win people over.” 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm! The Talent50 41. Diversity! 42. Diversity starts on the Board of Directors. 43. WOMEN RULE. 44. Weird Wins. 45. We are all unique. 46. Bosses “win people over.” 47. GOAL: Adventures of Mutual Discovery. 48. Foster Independence. 49. Enthusiasm!

182. Talent = Brand. 50. Talent = Brand.

183. EXCELLENCE. THE LEADERSHIP23.

184. 1. Enthusiasm. Energy. Exuberance. 2. Action. Execution. 3. Tempo. Metabolism. 4. Relentless. 5. Master of Plan B. 6. Accountability. 7. Meritocracy. 8. Leaders “do” people. Mentor. (“Success Leadership23/ML 1. Enthusiasm. Energy. Exuberance. 2. Action. Execution. 3. Tempo. Metabolism. 4. Relentless. 5. Master of Plan B. 6. Accountability. 7. Meritocracy. 8. Leaders “do” people. Mentor. (“Success creation business.”) 9. Women. Diversity. 10. Integrity. Credibility. Humanity. Grace. 11. Realism. 12. Cause. Adventures. Quests. creation business.”) 9. Women. Diversity. 10. Integrity. Credibility. Humanity. Grace. 11. Realism. 12. Cause. Adventures. Quests.

185. 13. Legacy. 14. Best story wins. 15. On the edge. (“Wildest chimera of a Leadership23/ML 13. Legacy. 14. Best story wins. 15. On the edge. (“Wildest chimera of a moonstruck mind.”) moonstruck mind.”) 16. “Reward excellent failures. Punish mediocre successes.” 17. Different > Better. (“Only ones who do mediocre successes.” 17. Different > Better. (“Only ones who do what we do.”) 18. MBWA. Customer MBWA. 19. Laughs. 20. Repot. Curiosity. Why? 21. You = Calendar. “To Don’t.” Two. 22. Excellence. Always. what we do.”) 18. MBWA. Customer MBWA. 19. Laughs. 20. Repot. Curiosity. Why? 21. You = Calendar. “To Don’t.” Two. 22. Excellence. Always. 23. Nelsonian! (“Other admirals more afraid of losing than anxious to win.”) of losing than anxious to win.”)

186. EXCELLENCE. BEDROCK. LEADERSHIP. 9Ps.

187. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

189. “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” — Howard Schultz, Starbucks (IBD/09.05)

190. ‘ Who do we intend to be?’ “Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: ‘ Who do we intend to be?’ Not ‘What are we going to do?’ but ‘Who do we intend to be?’” —Max De Pree, Herman Miller

191. “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?” Ah, kids: “What is your vision for the future?” “What have you accomplished since your first book?” “Close your eyes and imagine me immediately doing something about what you’ve just said. What would it be?” “Do you feel you have an obligation to ‘Make the world a better place’?”

192. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

193. “ Nothing is so contagious as enthusiasm.” “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge

194. “Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” “Whenever anything is being accomplished, I have learned, it is being done by a monomaniac with a mission.” —Peter Drucker

195. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

196. invites “In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

197. become more than they’ve ever been before, more than they’ve dreamed of being.” “The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech

198. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

199. 25

201. The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” “The First step in a ‘dramatic’ ‘organizational change program’ is obvious— dramatic personal change!” —RG

202. “ You must be the change you wish to see in the world.” “ You must be the change you wish to see in the world.” Gandhi

203. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

204. Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” —Grant

205. Grant had an extreme, almost phobic dislike of turning back and retracing his steps. “This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character : Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on—turning back was not an option for him.” —Michael Korda, Ulysses Grant

206. “ It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.” “ It is no use saying ‘We are doing our best.’ You have got to succeed in doing what is necessary.” —WSC

207. The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” "The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” —GB Shaw, Man and Superman: The Revolutionists' Handbook.

208. “ Success seems to be largely a matter of hanging on after others have let go.” “ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author

209. “The most successful people are those who are good at plan B.” “The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory, in The New Scientist

210. GERONIMO!’ "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine)

211. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

212. “Leaders ‘do’ people. Period.” “Leaders ‘do’ people. Period.” —Anon.

213. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

214. Big Big “ Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

215. 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. Avoid moderation! Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

216. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

217. “[other] admirals more frightened of losing than anxious to win” On NELSON: “[other] admirals more frightened of losing than anxious to win”

218. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

219. PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

220. “Excellence can be obtained if you:... care more than others think is wise;... risk more than others think is safe;... dream more than others think is practical;... expect more than others think is practical;... expect more than others think is possible.” is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

221. EXCELLE ALWAYS.