Tom Peters X 25 EXCELLENCE ALWAYS Colorado Springs01

Tom Peters’ X 25* EXCELLENCE. ALWAYS. Colorado Springs/01 June 2007 *In Search of Excellence 1982 -2007

Slides* at … tompeters. com *Also LONG

NOT YOUR FATHER’S WORLD!

“Copper Thieves Cause Havoc for Commuters” —The Guardian (London) 28. 05. 07

APPARENTLY, NOT YOUR WORLD, EITHER!

“[Former Fed Vice-chairman Alan] Blinder … remains an implacable opponent of tariffs and trade barriers. But now he is saying loudly that a new industrial revolution—communication technology that allows services to be delivered from afar—will put as many as American jobs 40 million at risk of being shipped out of the country in the next decade or two. ”* — Wall Street Journal /0328 *Blinder: 40 million = “only the tip of a very big iceberg. ”

Excellence. “then. ” now. THE ONE THING you need to know …

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

EXCELLENCE. CIRCA 1982.

Excellence 1982: 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”

EXCELLENCE. ASPIRATION. 2006.

Why in the World did you go to Siberia?

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

EXCELLENCE. ASPIRATION. UNIVERSAL.

Jim’s Group

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

Basement Systems Inc.

*Basement Systems Inc. /Larry Janesky Dry Basement Science * (115, 000!) *2006: $50, 000+

EXCELLENCE. ASPIRATION. UNIVERSAL.

7: 30 AM/830 PM/7/1200 AM/F riday/4 M Dog Biscuits/ Red Button

EXCELLENCE. NO EXCUSES.

Wallop. Wal*Mart 16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart 16 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 one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT. ) Compete on value/experience/ intimacy, not price. (You ain’t 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!!)

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

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

BIG? ? ? EXCELLENCE?

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

You don’t get better by being bigger. You get worse. ” Dick Kovacevich:

Daimler. And Dumb. Both Start with “d. ”

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

“Marriage in heaven” —Daimler- Benz and Chrysler exchange vows, circa 1998 (Jürgen Schrempp) “the divorce on earth” —Daimler exec, circa 2007, on probable Cerberus private equity purchase of Chrysler from Daimler

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

“Mr Zetsche, head of Chrysler from 2000 denied any to 2005, take he should responsibility for the U. S. carmaker’s troubles …” —Financial Times /05. 29. 07

EXCELLENCE. INNOVATE. OR. DIE.

Inno. Tac 64

revenue matters most

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

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

R C *Chief Revenue O* Officer

y it. Try it. Screw it up. Try it. Screw it Try it. try it. Try it. Screw it u Try it.

What makes God laugh?

People making plans!

do things.

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

drill.

“This is so simple it sounds stupid, but it is amazing you only find oil if you drill wells. how few oil people really understand that 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

try things.

“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 #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months. ” — Bloomberg by Bloomberg

Screw. things Up.

Sam’s Secret #1!

Noo try. No dea

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

Experiences that rock! Dreams that come true!

“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

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

“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 that’s not work or home. It’s the place our customers come for refuge. ” —Nancy Orsolini, District Manager

$798 (versus $415)

WHAT CAN BROWN DO FOR YOU?

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

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

X O* C *Chief e Xperience Officer

“No longer are we only an insurance Today, we also offer our customers the products and services that help them achieve their dreams — provider. whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation. ” —Martin Feinstein, CEO, Farmers Group

“We don’t ‘close units, ’ we build homes. ” —Larry Webb, John Laing Homes

“Soft Skills, Hard Dollars” Source: Headline, Big. Builder, September 2006

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

DM* DM C *Chief Dream Merchant

“Dreams Come True”: Harley Davidson Jim’s Group UPS Starbucks John Laing Homes

women. BOOMERS. GEEZERS.

women. BOOMERS.

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

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

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

“She knows more about the [Audi] than the salesman who greets her at the door. But how is she treated? As if she has a low IQ , is slightly hard of hearing , and really has no right to be buying a luxury car; and if she brought a male friend with her, odds are 10: 1 that the clueless salesperson spent most of his time speaking to him. ” —Selling to Men, Selling to Women, Jeffery Tobias Halter

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

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. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job. ” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness & value-added imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is … the point of men?

“Women come out better on almost every count as investors … They are less likely to hold a losing investment too long, and less likely to wait too long to sell a winner; they’re also less likely to put too much money into a single investment or to buy a reputedly hot stock without doing sufficient research. ” Source: The Merrill report: “When It Comes to Investing, Gender A Strong Influence on Behavior. ”/Atlantic

women. BOOMERS. GEEZERS.

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

!!!!!!!!! “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

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

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 world—and we will be the Center of your universe for the next twenty-five years. We have arrived!

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

EXCELLENCE. BEDROCK. LEADERSHIP. “ 9 Ps. ”

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

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

“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)

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

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

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

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

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

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

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

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

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

Bonus PURPOSE. PASSION. Potential. Presence. Personal. pissed off. Playful. PERSISTENCE. Prepared. PEOPLE. Peculiar. Potent. Positive.

The Black Swan: The Impact of the Highly Improbable Nassim Nicholas Taleb

3 Banking: = R. O. H. : 1982/Default Latin America = Total historical earnings; 1992/S & L; 2002/dot. com Las Vegas: Siegfried and Roy, 1, 000 X plus a handful of others = gambling variability 10 Wall Street: “In the last 50 years, the most extreme days in the financial markets represent half of the returns. Ten days in 50 years. Meanwhile, we are mired in chitchat. ” The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb

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

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

‘SERVE’ “Leaders people. Period. ” —Anon.

“Sorry, I’ve got to go—the HR people get on me if I don’t go do my ‘shake hands-chat up’ duty” —president, large division of large company in the _______ industry

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

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!

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. 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. Michelangelo

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

“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 possible. ” Source: Anon. (Posted @ tompeters. com by K. Sriram, November 27, 2006 1: 17 AM)

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

"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 Mc. Kenna, professional motorcycle racer (Cycle magazine 02. 1982)

Ger-on-i-mo!