X04: Excellence Found2004! Tom Peters/

And the Winner is … 1. Audacity of Vision 2. Innovation/R&D/Design 3. Talent Acquisition & Development 4. Resultant “Experience” 5. Strategic Alliances 6. Operations 7. Financial Management 8. Overall/Sustaining Excellence 9. “Wow!” 10. Lovemark!

Cirque du Soleil!

X2004 Cirque du Soleil Infosys FBR/Friedman Billings Ramsey London Drugs Build-A-Bear Griffin Health Services/Planetree Alliance Progressive Commerce Bank Richard Branson (HSM/WSB/CR)

Cirque du Soleil !

Cirque du Soleil: Talent (12 full-time scouts, database of 20,000). R&D (40% of profits; 2X avg corp). Controls (shows are profit centers; partners like Disney offset costs; $100M on $500M). Scarcity builds buzz/brand (1 new show per year. “People tell me we’re leaving money on the table by not duplicating our shows. They’re right.”—Daniel Lamarre, president). Source: “The Phantasmagoria Factory”/Business 2.0/

Infosys !

Infosys/Planet-warping Aspirations … “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report 2003

+49%/profits +52%/revenue Source: WSJ/ /“Infosys 2 nd -Period Profit Rose Amid Demand for Outsourcing”

FBR !

I Borrowed Your Watch: Here’s What Time It Is Make a Difference Add Exceptional Value Enduring Relationships with Companies that Have the Potential to Be Great After-market Performance Focus/Strong Sectoral Approach Focus/Underserved Middle Market/Mid-cap Cos Dramatic Difference Research Roots Research Investment Unique Analytic Process Highly Disciplined Fundamental Intrinsic Value Analysis Partnership Culture Mutual Support Enthusiasm Make a Difference D.C. as D.C. D.C. as not Wall Street Visibility/Tell Story/Brand

FBR: Fundamental Intrinsic Value Analysis Focus (You know what you’re doing) Difference (You know how you’re doing it) Culture (You understand the roots)

London Drugs !

“At London Drugs, everyone cares about everything.” —Wynne Powell

London Drugs *Each major department a “category killer” (pharmacy, computers, photo-photo finishing, cosmetics) *“Service added”/ Experience (e.g., consultation booths for pharmaceutical Clients) *Brilliant, eye-popping design-merchandising *Price point: peanuts to super-premium *Massive training, very low staff t/o *Big-bet experimentation-innovation *Locales begging for LD *Financials to die for *IS/IT/SC pioneers (compared favorably to Wal*Mart’s supply- chain management; exquisite vendor-partner programs) *Effectively deflected Wal*Mart incursion *Philosophy: fun, enthusiasm, innovation, commitment, care, talent development

Build-A- Bear !

Build-A-Bear * 1997 to 2004: $0 to $300M * Maxine Clark/CEO (25 yrs May Dept Stores) * Build-A-Bear Workshops * Engagement! (“Where Best Friends Are Made”) * Theater! *

Best Web Site? buildabear.com

Griffin Health Services Corporation/ Griffin Hospital/ Planetree Alliance !

“Planetree is about human beings caring for other human beings.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)

“It was the goal of the Planetree Unit to help patients not only get well faster but also to stay well longer.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Those of us working in healthcare have an obligation to be of service in this world, to be bringers of light and hope. Our work is spiritual by its nature, as the Planetree model has acknowledged for decades.” “Our definition of spirituality is coming into a right relationship with all that is, establishing a loving, nurturing, caring relationship. Planetree’s has been to refocus our attention on the power of relationships, and, in particular, the mind-body-spirit relationship essential to healing. It has opened a door that will never be closed.” —Leland Kaiser, “Holistic Hospitals” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The Importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Progressive !

Progressive Is … * “[Peter] Lewis has created an organization filled with sharp, type-A personalities who are encouraged to take risks—even if that sometimes leads to mistakes.” * “One thing that we’ve noticed is that they’ve always been very good at avoiding denial. They react quickly to changes in the marketplace.”—Keith Trauner/portfolio manager * “When four successive hurricanes hit Florida and neighboring states in August and September, Progressive sent more than 1,000 claims adjusters to the Southeast. Result: 80% of 21,000 filed claims had been paid by mid-October, an impressive figure. This pleased policy holders and probably helped Progressive because delays in claims payments typically mean higher costs.” Source: Barron’s/ “Polished Performer: The Car Insurance Game’s Best Managers Have Put Progressive in the Fast Lane”/

Commerce Bank !

Commerce Bank: From “Service” to “Experience” 7X. 730A- 800P. F12A.* *Plus: “WOW Department’” “Kill a Stupid Rule” contests, etc. ( ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.)

The Kevin & Richard Show !

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!

Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson/10.03