1 PEOPLE: A NEW PARADIGM Best Western International Spring Conference 2007

2 A GLOBAL WORLD… A) Surplus of similar companies selling similar products and services. Need to be different or unique! A) Surplus of similar companies selling similar products and services. Need to be different or unique! B) In almost every industry, upper end niches and low cost are growing, while all that falls in the middle is shrinking. B) In almost every industry, upper end niches and low cost are growing, while all that falls in the middle is shrinking.

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7 C) The dawn of the intangible economy 2002 price: 200 millions USD price: 200 millions USD. One single component accounts for 30% of the final price. One single component accounts for 30% of the final price. Which one? Which one?

8 1 KG (Approx 2 Pounds) GOES FOR 3960 EURO’S Silver? Silver? No (300 Euro’s/KG) No (300 Euro’s/KG) 1 Kg of Hermes scarves = 3960 euro!!!! 1 Kg of Hermes scarves = 3960 euro!!!!

9 INTANGIBLE FACTORS ADD THE REAL VALUE TODAY! “Value today is added by what is around the product: by the application of creativity and intellectual capital”. – Tom Peters “Value today is added by what is around the product: by the application of creativity and intellectual capital”. – Tom Peters

10 A new middle class coming into town…

11 Today it is human capital that produces economic capital “Smart Branding”: getting your people to decide to add value. “Smart Branding”: getting your people to decide to add value. “The real secret is World Class Leadership” – John Di Julius, Secret Service. “The real secret is World Class Leadership” – John Di Julius, Secret Service.

12 “US workers hate their jobs more than ever” – Inc.com March 6th, According to Lynn Franco, director of the Conference Board Consumer Research Center, satisfaction levels have deteriorated in recent years among all types of workers regardless of age, income or even residence. According to Lynn Franco, director of the Conference Board Consumer Research Center, satisfaction levels have deteriorated in recent years among all types of workers regardless of age, income or even residence. Above 50% of US workforce doesn’t like its current job. Above 50% of US workforce doesn’t like its current job. When asked what they didn't like about their job, most workers said they were unhappy with bonus plans and promotion policies, followed by excessive workload and potential for growth, according to the study. When asked what they didn't like about their job, most workers said they were unhappy with bonus plans and promotion policies, followed by excessive workload and potential for growth, according to the study. Only 39% of respondents aged 25 and younger said they liked their jobs. Only 39% of respondents aged 25 and younger said they liked their jobs.

13 The missing 80% Only 19% of employees feel passionate about top goals in their organization. Only 19% of employees feel passionate about top goals in their organization. No emotionally connected to the leader/goal No emotionally connected to the leader/goal

14 LEADERSHIP A LEADER IS SOMEONE WHOSE REQUESTS ARE EXECUTED WITH PRIDE. A LEADER IS SOMEONE WHOSE REQUESTS ARE EXECUTED WITH PRIDE. In order to develop leadership you must feel fully responsible for the behavior of the people you are leading. In order to develop leadership you must feel fully responsible for the behavior of the people you are leading. When something goes wrong it’s not them, IT IS YOU! When something goes wrong it’s not them, IT IS YOU!

15 QUALITY OF RELATIONSHIPs The emotional connection existing between the leader and the employee cannot be replaced by processes, statistics, organizing boards, budgets, management systems. The emotional connection existing between the leader and the employee cannot be replaced by processes, statistics, organizing boards, budgets, management systems. If you want things to change… If you want things to change… The first one who has to change is YOU. The first one who has to change is YOU.

16 LEADERSHIP Find your voice Find your voice The noble and the farmer The noble and the farmer It doesn’t matter your standing in life, there is a unique contribution that YOU and only you can do for mankind. It doesn’t matter your standing in life, there is a unique contribution that YOU and only you can do for mankind. Having realized that, you’re well on your way to the leadership path. Having realized that, you’re well on your way to the leadership path.

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18 A changing world… 1) High end or low end(Sexy or Fit), all the rest is shrinking. 1) High end or low end(Sexy or Fit), all the rest is shrinking. 2) Today value is added by what is around the product/service 2) Today value is added by what is around the product/service 3) Employees own the UVP of our organizations. 3) Employees own the UVP of our organizations. 4) The real challenge for all business owners is to develop a new paradigm on people. 4) The real challenge for all business owners is to develop a new paradigm on people. Mind Consulting Mind Consulting