NOTE: To appreciate this presentation [and ensure that it is not a mess ], you need Microsoft fonts: Showcard Gothic, Ravie, Chiller and Verdana

#1 Exporter?

#4 Japan

#4 Japan #3 (#2/2006) USA #2 (#3) China

#4 Japan #3 USA #2 China #1 Germany

Reason? Daimler? BASF? Siemens?

Or … Goldmann Produktions (11/50%/$5M/dip and coat, expensive pigments vs through coloring, fades Bekro Chemie)

Reason!!! Mittelstand

GEOBRA/Playmobil Trumpf Rational Goldmann Produktions

Skunk Camp #1: American Mittlestand (F500 A.W.O.L.) Frank Perdue/ Perdue Farms (It takes a tough man to make a tender chicken.) a tough man to make a tender chicken.) Tom Malone/ Milliken and Company Don Burr/ People Express Tom Monaghan/ Dominos Pizza Stew Leonard/ Stew Leonards Hal Rosenbluth/ Rosenbluth International John Fisher/ Bank One of Columbus John McConnell/ Worthington Industries Bill and Vieve Gore/ W.L. Gore Bob Buckman/ Buckman Labs (Bob almost single-handedly invented what we now call single-handedly invented what we now call knowledge management.) knowledge management.)

Jims Group

Jims Mowing Canada Jims Mowing UK Jims Antennas Jims Bookkeeping Jims Building Maintenance Jims Carpet Cleaning Jims Car Cleaning Jims Computer Services Jims Dog Wash Jims Driving School Jims Fencing Jims Floors Jims Painting Jims Paving Jims Pergolas [gazebos] Jims Pool Care Jims Pressure Cleaning Jims Roofing Jims Security Doors Jims Trees Jims Window Cleaning Jims Windscreens Note: Download, free, Jim Penmans book: What Will They Franchise Next? The Story of Jims Group

Jims Group : Jim Penman.* 1984: Jims Mowing. 2006: Jims Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. People first. Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. Jims Group : Jim Penman.* 1984: Jims Mowing. 2006: Jims Group. 2,600 franchisees (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. People first. Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly. *Ph.D. cross-cultural anthropology; mowing on the side Source: MT/Management Today (Australia), Jan-Feb 2006

Basement Systems Inc. Basement Systems Inc.

*Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1993: $0; 2003: $12M; 2006: $50,000,000+

7:30AM/830P M/7/1200AM/ Friday/4M Dog Biscuits/ Red Button 7:30AM/830P M/7/1200AM/ Friday/4M Dog Biscuits/ Red Button

Single greatest act of pure of pureimagination

24%

dubai

EXCELLENCE. ASPIRATION. 14 MAY EUGENE OR. PAT KILKENNY.

You do not merely want to be the best of the best. You want to be considered the only ones who do what you do. You do not merely want to be the best of the best. You want to be considered the only ones who do what you do. Jerry Garcia

Small Giants: Companies That Choose To Be Great Instead Of Big Small Giants: Companies That Choose To Be Great Instead Of Big by Bo Burlingham

Small Giants/Bo Burlingham I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business -- a relationship that went well beyond the usual concept of `giving back.'" they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises." "First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create." "Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow." "Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business -- a relationship that went well beyond the usual concept of `giving back.'" "Fourth, they cultivated exceptionally intimate relationships with customers and suppliers, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises."

Small Giants/Bo Burlingham the companies also had what struck me as unusually intimate workplaces." I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion." "Fifth, the companies also had what struck me as unusually intimate workplaces." "Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with." "Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."

WallopWal*Mart16* ABSURDLY EASY BEAT GIANT WallopWal*Mart16* *Or: Why its so ABSURDLY EASY to BEAT a GIANT Company

The Small Guys Guide: Wallop Wal*Mart16 * Niche-aimed. (Never, ever all things for all people, a mini- Wal*Mart.) * Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *Dramatically Different (La Difference... within our community, our industry regionally, etc … is as obvious as the end of ones nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) * Compete on value/experience/intimacy, not price. (You aint gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) * Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

Wegmans

People! People!

TP: TP: How to piss away $500,000 in one easy lesson!!

Clever human resources programs that take into account the new realities concerning Gen X or Chinese competition or Web 2.0 are not the that take into account the new realities concerning Gen X or Chinese competition or Web 2.0 are not the basis for creating competitive advantage through an excellent workforce. The great secret to people excellence is treat people with manifest respect and appreciation and trust, and give them a chance to express the best in themselves and dramatically broaden their horizonsand the rest will take care of itself for Gen A or Gen B or Gen X or Gen Boomer. basis for creating competitive advantage through an excellent workforce. The great secret to people excellence is treat people with manifest respect and appreciation and trust, and give them a chance to express the best in themselves and dramatically broaden their horizonsand the rest will take care of itself for Gen A or Gen B or Gen X or Gen Boomer.

Servant Leadership Robert Greenleaf The Human Side of Enterprise Douglas McGregor Douglas McGregor The Managers Book of Decencies: How Small gestures Build Great Companies. Steve Harrison The SPEED of Trust: The One Thing that Changes Everything Stephen M.R. Covey and Rebecca Merrill

Tom Peters X25* EXCELLENCE. ALWAYS. AICC/Minneapolis/11 October 2007 *In Search of Excellence

tompeters.com Slides at … tompeters.com

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

[other] admirals more frightened of losing than anxious to win On NELSON: [other] admirals more frightened of losing than anxious to win

1. Ready. Fire! Aim. 2. If it aint 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 aint 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!

All you need to know …

25

R.O.I.R

Return On Investment In Relationships

THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.

Jim Jeffords oversight! The … Jim Jeffords oversight!

LeadersSERVE people. Period. LeadersSERVE people. Period. Anon.

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

All you need to know … except for …

Conrad Hilton, at a gala celebrating his life, was asked, What was the most important lesson youve learned in your long and distinguished career? His immediate answer: remember to tuck the shower curtain inside the bathtub

Truly, truly All you need to know …

Women Forget China, India and the Internet: Economic Growth Is Driven by Women. Headline, Economist, April 15, 2006, Leader, page 14

All you need to know …

The last word: There is no last word.

Headline, Wall Street Journal, 3 October 2007: Wal*Mart Era Wanes Amid Big Shifts In Retail: Rivals Find Strategies To Defeat Low Prices; World Has Changed Sentence #1: The Wal*Mart Era, the retailers time of overwhelming business and social influence in America, is drawing to a close.

The last word: There is a last word.

Make sure your executive team includes top talent in design, engineering and manufacturing, because thats your only! priority to build! Cars! People! Want! to buy! Hot styling sells them and quality keeps them sold. Lee Iacocca, Where Have All the Leaders Gone?

Tom Peters X25* EXCELLENCE. ALWAYS. *In Search of Excellence

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

The Creative Age is a wide open game. The Creative Age is a wide open game. Richard Florida, The Rise of the Creative Class

NZ = Design Excellence Better By Design: A National Strategy NZ = Design Excellence

We have to move up the value chain and focus increased efforts on becoming a knowledge-based, entrepreneurial economy if we are to prosper in the medium to long term. Tony Dromgoole, Chief Executive, Irish Management Institute

Avoiding the Crush: For countries to climb the economic ladder they need strategies to get around China Beijings industrial dominance has forced middle-income nations such as the Philippines to complement rather than compete withthe wares of the Middle Kingdom Source: Headline, FT,

THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND THE FUTURE BELONGS TO … SMALL POPULATIONS … WHO BUILD EMPIRES OF THE MIND … AND WHO IGNORE THE TEMPTATION OFOR DO NOT HAVE THE OPTION OFEXPLOITING NATURAL RESOURCES. Source: Juan Enriquez/As the Future Catches You

Tom Peters X25* EXCELLENCE. ALWAYS. *In Search of Excellence

EXCELL- ENCE???? EXCELL- ENCE????

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

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 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 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 Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

Forget > Learn The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock

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

EXCELLENCE. CIRCA 1982.

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

Breakthrough 82* People! People!Customers!Action!Values! *In Search of Excellence

$85,000 $140,050 ExIn*: /Forbes.com DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 *Forbes/ Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE. ASPIRATION

Why in the World did you go to Siberia? go to Siberia?

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!

Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human concerted human potential in the wholehearted service of others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE. the rules.

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients & extended familys continuing custom) excellence (period)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients & extended familys continuing custom) excellence (period) servant leadership

Cause Space Decency service excellence servant leadership

EXCELLENCE. INNOVATE. OR. DIE.

BIG??? EXCELLENCE?

The Mess Is The Message! Period!

What makes God laugh?

People making plans!

What makes tom laugh?

Gurus (and once- famous CEOs) giving LLLs (logical linear lectures) on systems* of innovation! * especially with lots of charts and graphs and Greek mathematical symbols and little tiny numbers

You dont get better by being bigger. You get worse. Dick Kovacevich: You dont get better by being bigger. You get worse.

Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals. Financial Times, 0329, on possible Barclays-ABN Amro merger (When it comes to asking the stock market whether bigger banks are better, the current answer is a resounding no. Citigroup analysis, 2006)

Moreover, comparison companiesthose that failed to make a leap or, if they did, failed to sustain itoften 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/2004Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companiesthose that failed to make a leap or, if they did, failed to sustain itoften 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

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 nimbleJerry Knight/ Washington Post/ 08.05

Daimler. And Dumb. Both Start with d.

Mission impossible? $36B/98 minus $675M/07

DaimlerChrysler/98-07: Duh, Duh, Duh, Duh and … Duh Manifold Synergies / No Severe Scale limits/ Yes Culture clashes/ Yes Rushmorean ego issues/ Yes Customer acceptance /No

$10,000,000/Day

InnoTacs

revenue matters most

The Commerce Bank Model cost cutting is a death spiral. Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

Our whole story is growing revenue. Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting)

The Commerce Bank Modelover-invest in our people, over-invest in our facilities. Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

We become who we hang out with 1

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

We become who we hang out with

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

Catalyst just completed a study showing that companies with at least three women directors performed significantly better than average in terms of return on equity (16.7% better), return on sales (16.8%), and return on invested capital (10%) Source: Newsweek, /16% of S&P500 board members are women; 9% (45) no women

try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.

do things.

We have a strategic plan. Its called doing things. We have a strategic plan. Its called doing things. Herb Kelleher

drill.

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 youre finding it when youre drawing maps and studying logs, but you have to drill. Source: The Hunters, by John Masters, Canadian O & G wildcatter

try things.

We made mistakes, of course. Most of them were omissions we didnt 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, were 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

Experiment fearlessly Tactic #1 Experiment fearlessly Source: BW , Type A Organization Strategies/ How to Hit a Moving Target Tactic #1

SERIOUS PLAY

You cant be a serious innovator unless and until you are ready, willing and able to seriously play.Serious play is not an oxymoron; it is the essence of innovation. Michael Schrage, Serious Play

Culture of Prototyping Effective prototyping may be the most valuable core competence an innovative organization can hope to have. Culture of Prototyping Effective prototyping may be the most valuable core competence an innovative organization can hope to have. Michael Schrage

Learn not to be careful. Careful = The sidelines Learn not to be careful. Photographer Diane Arbus to her students (Careful = The sidelines, from Harriet Rubin in The Princessa)

Screw. things. Up.

Fail. Forward. Fast. Fail. Forward. Fast. High Tech CEO, Pennsylvania

If people tell me they skied all day and never fell down, I tell them to try a different mountain. Michael Bloomberg (BW/ )

Sams Secret #1!

Reward PunishReward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec

Whoever Makes the Most Mistakes Wins: The Paradox of Innovation Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation

try. Miss. try.

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

S.A.V.

No try. No deal.

You miss 100% of the shots you never take. WayneGretzky You miss 100% of the shots you never take. Wayne Gretzky

Focus.

#1/Quality = More procedures [Main Line Lankenau] Source: In Health Care, Cost Isnt Proof of High Quality, NYT, (PA data, 60 hospitals, bypass surgery)

30 1% 90 10%- 15% The Benefits of … FOCUSED EXCELLENCE Shouldice/Hernia Repair: 30 min, 1% recurrence. Avg: 90 min, 10%- 15% recurrence. Source: Complications, Atul Gawande

All Strategy Is Local: True competitive advantages are harder to find and maintain than people realize. The odds are best in tightly drawn markets, not big, sprawling ones. Focus: All Strategy Is Local: True competitive advantages are harder to find and maintain than people realize. The odds are best in tightly drawn markets, not big, sprawling ones. Title/ Bruce Greenwald & Judd Kahn/HBR09.05

Conscious measurement

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

personal

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

Work on me first. Work on me first. Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

EXCELLENCE. VALUE ADDED. UP THE LADDER.

LEAVE IT TO BEAVER.

<$20 Trapper: <$20 per beaver pelt. Source: WSJ

wdcp/Wildlife Damage-control Professional: $150 to remove problem beaver; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ

Trapper = Redneck WDCP = PSF/ Professional Services Provider

7X to 40X for Solution [rather than service transaction]

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

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

$55B

Flagship of BestBuy Wholesale Solutions Strategy Makeover. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale Solutions Strategy Makeover.

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

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

OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. SOLVE IT. NO OPTION. PSF. (PSF++)

Managing Partner, ISInc. Department Head to … Managing Partner, IS [HR, R&D, etc.] Inc.

PSF Answer: PSF

Financial Services Make dealers successful so they CAN pay Trek is the commercial financial Company 12 employees Oversee peak AR of $160M Identify opportunities Profit Center Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments PSF Transformation: Credit Department/Trek Was Is Credit Dept Financial Services Hammer on dealers until Make dealers successful so they they pay CAN pay AR sold to 3 rd party Trek is the commercial financial commercial co. Company 23 employees 12 employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/

EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

Experiences are as distinct from services as services are from goods. 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

We have identified a third place. The [ Starbucks ] Fix Is on … We have identified a third place. And I really believe that sets us apart. The third place is that place thats not work or home. Its the place our customers come for refuge. Nancy Orsolini, District Manager

$798

WHAT CAN BROWN DO FOR YOU?

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

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

MEMORABLE CONNECTION Spellbinding Experiences The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Great Vacation/ Great Conference/ Operation Personal Renewal Beyond the Transaction/ Satisfaction Mentality Good hotel/ Happy guest/ Exceeded Expectations vs. Great Vacation/ Great Conference/ Operation Personal Renewal

Warren Goes Shopping …

Q: Why did you buy Jordans Furniture? A: Jordans is spectacular. Its all showmanship. Source: Warren Buffet interview/Boston Sunday Globe/

C X O C X O* *Chief e X perience Officer

First Step (?!): Hire a theater director, as a consultant or FTE!

TGR [Things Gone WRONG/Things Gone RIGHT] TGR [Things Gone WRONG/Things Gone RIGHT]

Words! Magician of Magical Moments Maestro of Moments of Truth Recruiter of Raving Fans Impresario of First Impressions Wizard of WOW Captain of Brilliant Comebacks Director of Electronic Customer Experiences Conductor of Customer Intimacy King of Customer Community Queen of Customer Retention CEO of Ownership Experience Managing Director of After-sales Experience

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

MEMORABLE CONNECTION Spellbinding Experiences The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

EXCELLENCE. SOUL. DESIGN.

Design is the only thing that differentiates one product from another in the marketplace. All Equal Except … At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace. Norio Ohga

treated like a religion Design is treated like a religion at BMW. Fortune

Design is the fundamental soul of a man-made creation. We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation. Steve Jobs

Design Transforms even the [Biggest] Corporations! TARGET … the champion of Americas new design democracy (Time) Marketer of the Year 2000 (Advertising Age)

Westins … Heavenly Bed

Packaging, Power of … 1870: animal feed. 1890: A delicacy for the epicure, a nutritious dainty for the invalid, a delight to the children Source: Thomas Hine, The Total Package: The Evolution and Secret Meanings of Bottles, Boxes, Cans and Tubes (on Quaker Oats)

Packaging Power: From Quaker Oats to … Listerine PocketPaks

Lady Sensor, Mach3, and … $70M on developing the OralB CrossAction toothbrush 23 patents, including 6 for the packaging Source:

Packages are about containing and labeling and informing and celebrating. They are about power and flattery and trying to win peoples trust. They are about beauty and craftsmanship and comfort. They are about color, protection, survival. –Thomas Hine, The Total Package

Message (?????): Men cannot design for womens needs.

C D O Design C D O * *Chief Design Officer

Business people dont need to understand designers better. Businesspeople need to be designers. Roger Martin/Dean/Rotman Management School/ University of Toronto

Message (?????): Men cannot design for womens needs.

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

We sell dreams 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

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

EMOTION Dreams Come True The Value-added Ladder/ EMOTION Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

NEW MARKETS.

E-nor-mous Stra-te-gic opp-or-tun- ity. Damn it.

women. BOOMERS. GEEZERS.

EXCELLENCE. AARGH.

Psssst! Wanna see my porn collection?

EXCELLENCE. DUH.

To be a leader in consumer products, its critical to have leaders who represent the population we serve. Steve Reinemund, former CEO, PepsiCo

women. BOOMERS. GEEZERS.

Forget China, India and the Internet : Economic Growth Is Driven by Women. Forget China, India and the Internet : Economic Growth Is Driven by Women. Headline, Economist, April 15, 2006, Leader, page 14

Womens Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES Womens Trifecta+ *Buy *Wealth *Lead + ECLIPSE OF MALES (Old/Retire; Young/Poorly educated)

Women are the majority market Fara Warner/The Power of the Purse

Home Furnishings … 94% Vacations … 92% Houses … 91% D.I.Y. … 80% Consumer Electronics … 51% Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% ????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major home projects) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

Womens Commercial Purchasing Power Purchasing mgrs. & agents: 51% HR: >>50% Admin officers: >50% Source: Martha Barletta, Marketing to Women

Repeat: Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from womens increased purchasing power; over the past decade the value of shares in Goldmans basket has risen by 96%, against the Tokyo stockmarkets rise of 13%. of 13%. Economist, April 15

The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyers gender. The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyers gender. Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer Jill and Jack buy slacks in black…

They join them. Women dont buy brands. They join them. EVEolution

Selling to men: The TRANSACTION Model Selling to Women: The RELATIONAL Model Source: Selling to Men, Selling to Women, Jeffery Tobias Halter

2.6 vs. 21

Cases! Cases! Cases! McDonalds Home Depot P&G DeBeers AXA Financial Kodak Nike Avon Bratz Fara Warner/The Power of the Purse Cases! Cases! Cases! McDonalds (mom-centered to majority consumer; not via kids) Home Depot (Do it [everything!] Herself) P&G (more than house cleaner) DeBeers (right-hand rings/$4B) AXA Financial Kodak (women = emotional centers of the household) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want friends, not a blond stereotype) Source: Fara Warner/The Power of the Purse

We simply had stopped being relevant to women. Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, From Minority to Majority: McDonalds Discovers the Woman Inside the Mom)

McDonalds shifted its strategy toward women from one of minority consumers who served as a conduit to the important childrens market to one in which women are the companys majority consumers and the main driver behind menu and promotion innovation. McDonalds shifted its strategy toward women from one of minority consumers who served as a conduit to the important childrens market to one in which women are the companys majority consumers and the main driver behind menu and promotion innovation. Fara Warner, The Power of the Purse, From Minority to Majority: McDonalds Discovers the Woman Inside the Mom

EXCELLENCE. OPPORTUNITY. WOMEN. BUSINESS. OWNERS.

10.6

The growth and success of women- owned businesses is one of the most profound changes taking place in the business world today. today. Margaret Heffernan, How She Does It

Women-owned Biz U.S. employees > F500 employees worldwide Source: Martha Barletta, Marketing to Women

WOMEN. DOMINATE. ECONOMIC. GROWTH.

Forget China, India and the Internet : Economic Growth Is Driven by Women. Forget China, India and the Internet : Economic Growth Is Driven by Women. Headline, Economist, April 15, 2006, Leader, page 14

Since 1970, women have held two out of every three new jobs created. Since 1970, women have held two out of every three new jobs created.FT,

10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Womens work force participation rates have soared worldwide. soared worldwide. Women are closing in on same pay for same job. job. Women are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se]. office per se]. Womens leadership strengths are exceptionally well aligned with new organizational effectiveness & aligned with new organizational effectiveness & value-added imperatives. value-added imperatives. Women are better salespersons than men. Women buy [almost] everythingcommercial as well as consumer goods. as well as consumer goods. So what exactly is … the point of men?

COROLLARY. EXCELLENCE. WOMEN. RULE.

AS LEADERS, WOMEN RULE: TITLE/ Special Report/ BusinessWeekAS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure TITLE/ Special Report/ BusinessWeek

TAKE THIS QUICK QUIZ Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is better at keeping in touch TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer to do list? Who enjoys a recap to the days events? Who is better at keeping in touch with others? Selling Is a Womans Game: 15 Powerful Reasons Why with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

Womens Negotiating Strengths *Ability to put themselves in their counterparties shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Womens Negotiating Strengths *Ability to put themselves in their counterparties shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, Say It Like a Woman: Why the 21 st -century negotiator will need the female touch

Period??!!* Start: 3 0f months later: 10 of 18 (deep dip!) *AIM/September 2007

women. BOOMERS. GEEZERS.

!!!!!!!!!!!!!!!!! People turning 50 today have more than half of their adult life ahead of them. People turning 50 today have more than half of their adult life ahead of them. Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/13

13 7 Average # of cars purchased per household, lifetime: 13 Average # of cars bought per household after the head of household reaches age 50: 7 Source: Marti Barletta, PrimeTime Women

20 $14,000,000,000,000- $25,000,000,000,000

women. BOOMERS. GEEZERS.

Subject: Marketers & Stupidity Its 18-44, stupid!

Subject: Marketers & Stupidity Subject: Marketers & Stupidity Or is it: is stupid, stupid!

-1% +21% +47% Stats 18-44: -1% 55+: +21% (55-64: +47% )

BOOMERS. GEEZERS. MONEY. ALL. NOW.

We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the worldand we will be the Center of your universe for the next twenty- five years. We have arrived!

Boomers-Geezers-Womens Trifecta+ *Buy/all *Wealth/all *time left/ lots *Eclipse of males/retire-die

New Customer Majority 44-65: New Customer Majority * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

Baby-boomer Women : The Sweetest of Sweet Spots for MarketersBaby-boomer Women : The Sweetest of Sweet Spots for Marketers David Wolfe and Robert Snyder, Ageless Marketing

Peo- ple

EXCELLENCE. BEDROCK. TALENT.

Hire very good people!

20 40 $25$80 2 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

INVITE THEM TO JOIN US IN A JOURNEY TO EXCELLENCE!

invites In the end, management doesnt change culture. Management invites the workforce itself to change the culture. Lou Gerstner

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.

free to do his or her absolute best … allow its members to discover their greatness. Leaderships Mt Everest/Mt Excellence free to do his or her absolute best … allow its members to discover their greatness.

EMPHASIZE THE SOFT SKILLS.

I cant tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the fieldand, naturally, after they graduated too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams. Bo Schembechler (and John Bacon), Recruit for Character, Bos Lasting LessonsI cant tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the fieldand, naturally, after they graduated too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams. Bo Schembechler (and John Bacon), Recruit for Character, Bos Lasting Lessons

Diversity = profit Diversity = profit

Where do good new ideas come from? Thats simple! From differences. Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines. Nicholas Negroponte

Build on strengths Build on strengths

Discover what is unique about each person and capitalize on it. The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … Discover what is unique about each person and capitalize on it. Marcus Buckingham, The One Thing You Need to Know

He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance. The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach persons weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance. Marcus Buckingham, The One Thing You Need to Know

53 = 53

One size … NEVER … fits all.

53 = 53

Promise #1: Never, ever again will I evaluate anyone using a standardized instrument devised by a professional in inhuman Resources.

SO YOURE A PEOPLE PERSON? PROVE IT.

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

Connoisseur of Talent PARCs Bob Taylor: Connoisseur of Talent

SO YOURE A PEOPLE PERSON? PROVE IT.

We are a Life Success Company. We are a Life Success Company. Dave Liniger, founder, RE/MAX

help that individual experience success. No matter what the situation, [the great managers] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success. Marcus Buckingham, The One Thing You Need to Know

Do TALENT!

From sweaters to … people! Les Wexner: From sweaters to … people!

SO YOURE A PEOPLE PERSON? PROVE IT.

People! People!

LIVE FOR TALENT!

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

Internal brand promise!

EVP/ IBP Whats your companys … EVP/ IBP?* *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP

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

Brand = Talent.

I have always believed that the purpose of the corporation is to be a blessing to the employees. Boyd Clarke

EXCELLENCE. BEDROCK. LEADERSHIP. 10Ps.

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

People want to be part of something larger than themselves. They want to be part of something theyre really proud of, that theyll fight for, sacrifice for, trust.People want to be part of something larger than themselves. They want to be part of something theyre really proud of, that theyll fight for, sacrifice for, trust. Howard Schultz, Starbucks (IBD/09.05)

Leader Job One Paint Portraits of Excellence !

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

Nothing is so contagious as enthusiasm. Nothing is so contagious as enthusiasm. Samuel Taylor Coleridge

BZ: I am a … Dispenser of Enthusiasm!

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

The role of the Director is to create a space where the actors and actresses can become more than theyve ever been before, more than theyve dreamed of being. Robert Altman, Oscar acceptance speech

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

25

Its always showtime. Its always showtime. David DAlessandro, Career Warfare

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

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

Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the little things you (perhaps unconsciously) do that cause people to shrivelor blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of hashing things out? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think youre in touch with the pulse of things around here? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are so much BS?]

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

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

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

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

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PRIORITIES. PEOPLE. potent. Positive.

I used to have a rule for myself that at any point in time I wanted to have in mind as it so happens, also in writing, on a little card I carried around with me the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three. Richard Haass, The Power to Persuade

Really Important Stuff: Rogers Rule of Three!

Dennis, you need a … To-dont List !Dennis, you need a … To-dont List !

The one thing you need to know about sustained individual success: Discover what you dont like doing and stop doing it. The one thing you need to know about sustained individual success: Discover what you dont like doing and stop doing it. Marcus Buckingham, The One Thing You Need to Know

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

Leadersdo people. Period. Leadersdo people. Period. Anon.

LeadersSERVE people. Period. LeadersSERVE people. Period. Anon.

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

Officers eat last!

Leaderships 11 th P: Promotion Leaderships 11 th P: Promotion

2 per Year/ 20 per Decade = Excellence + Legacy

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

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.

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

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

[other] admirals more frightened of losing than anxious to win On NELSON: [other] admirals more frightened of losing than anxious to win

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

The 7E s The 7E s

Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!

The 1E

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. tompeters.com by K.Sriram, November 27, :17 AM)

Ger- on-i- mo !

Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) aCCEPT NO LESS THAN EXCELLENCE/PURSUE Wow! enjoy It While It Lasts

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, shoutingGERONIMO! Bill McKenna, professional motorcycle racer (Cycle magazine )

EXCELLE ALWAYS.