2. Transforming Potential Into Unmatched Performance A Supplement to: Monday Morning Musings Volume V, Number 30 July 23, 2007

3. Moving the Tipping Point The Pareto Principle How We Think of It: “The 80-20 Rule” WHY Group, LLC2 80 % 20%

4. Moving the Tipping Point The Pareto Principle How It Is: The 20-60-20 Rule WHY Group, LLC3 20% Visionary Leadership 60% Core Performers 20% Obstructionists (TEDs: Total Energy Drains) Management’s Challenge?

5. The “TED” Factor & The Law of Unintended Consequences Who leaves when “leaders” fail to lead? Certainly Not the “TED’s,” Nor those with the “Vision,” but Rather the “Core Performers.” WHY Group, LLC4

6. The TED Factor and Leaders One of the Saddest Ways for Leaders to Lose Respect & Trust is to: Tolerate Poor Performers Allow High Performers (Super Stars) & their Pets to abuse the rules, policies and values of the organization The Consequence: Poor Morale, Poor Productivity and Turnover WHY Group, LLC5

7. If, When, and How a Leader Deals with the Ted Factor is The Key to Moving the Tipping Point 6 Abandonment Zone Time 100% “Old” Culture Tipping Point New Culture WHY Group, LLC

8. The “Key” to the Tipping Point “The best way to be faithful to the people who are committed, producing, achieving is to not burden them with the people who are not committed, not producing, not achieving” or otherwise not supporting the purpose and values of the team. Dealing quickly and appropriately with the TEDs moves the Tipping Point closer. Ignoring the TEDs may place the Tipping Point beyond reach (and ensures the old “culture” returns). WHY Group, LLC7

9. Copyright 2007 All Rights Reserved WHY Group, LLC PO Box 781448 San Antonio, TX 78278-1448 1-800-290-1614 Web site: www.whyllc.comwww.whyllc.com For Information contact: J. Keith Hughey (khughey@whyllc.com) 8