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

2. $10,000,000/Day

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

4. “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)

5. Tom Peters’ X25* EXCELLENCE. ALWAYS. World Knowledge Forum Seoul/17 October 2007 *In Search of Excellence 1982-2007

6. tompeters.com Slides at … tompeters.com

7. THE LOOOOONG ODDS AGAINST “LASTING EXCELLENCE.”

8. The last word: There is no “last word.”

9. Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Yahoo … Home Depot … Microsoft … GE … Citigroup … Time Warner

10. 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”

11. 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

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

13. 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 1987. 74 12 “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 1987. 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 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

14. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

15. “Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work

16. Top 100 7 Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in 2004. Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

17. THE SECRETS OF EXCELLENCE I: DECENTRALIZATION.

18. “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” — Brian Joffe/BIDvest

19. Enemy #1 I.C.D. Note 1: Inherent/Inevitable/ Immutable Centralist Drift Note 2: Jim Burke’s 1-word vocabulary: “No.”

20. THE SECRETS OF EXCELLENCE II: CHURN.

21. Q4/2006 +500,000 Source: Barron’s 0922.07

22. Q4/2006 +500,000 = ? Source: Barron’s 0922.07

23. Q4/2006 +500,000 = +7,700,000 -7,200,000 Source: Barron’s 0922.07

24. “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly

25. The Mess Is The Message! Period!

26. Palo Alto/30 California/35

27. *Entrepreneurial magnet *Talent in general *Critical mass *VCs (all levels) *Immigrants-Diversity *Research Universities *Climate-Way of life *Attitude! (Everything is possible!) *IBM? Who cares? *Etc

28. THE SECRETS OF EXCELLENCE III: THE MID-SIZED ENTERPRISE.

29. #1 Exporter?

30. #4 Japan

31. #4 Japan #3 (#2/2006) USA #2 (#3) China

32. #4 Japan #3 USA #2 China #1 Germany

33. Reason? Daimler? BASF? Siemens? Commerzbank?

34. Reason!!! Mittelstand

35. GEOBRA/Playmobil Trumpf Rational Goldmann Produktions

36. 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 Leonard’s 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.”)

37. Jim’s Group

38. 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

39. * Lived in same town all adult life *First generation wealthy/no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull- normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko

40. Ichiro-nomics

41. Ichironomics “Spokane, like Minneapolis-St Paul, refuses to bet the economy on one or two industries. Rather, it practices what one city booster calls ‘Ichironomics. Like the Seattle Mariners’ center fielder, Ichiro Suzuki, we try to hit singles and doubles. We want to improve the overall conditions for small businesses, not chase the large employer.’”—Rich Karlgaard, Forbes (NB: In 2004 Suzuki broke the all-time record for hits in a single season, with a staggering 262.) in a single season, with a staggering 262.) (NB II: In 2007 the mayor of Lisbon reduced the amount of time to get a business license from weeks or months to, literally, minutes.) a business license from weeks or months to, literally, minutes.)

42. THE SECRETS OF EXCELLENCE IV: UNBRIDLED IMAGINATION.

43. Single greatest act of pure imagination of pure imagination

44. 24%

45. dubai

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

47. THE SECRETS OF EXCELLENCE V: EDUCATION FOCUSED ON NURTUTING CREATIVITY.

48. “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class

49. “It is nothing short of a miracle that modern methods of instruction have not yet entirely strangled the holy curiosity of inquiry.” —Albert Einstein

50. “The key question isn’t ‘What fosters creativity?’ But it is why in God’s name isn’t everyone creative? Where was the human potential lost? How was it crippled? I think therefore a good question might be not why do people create? But why do people not create or innovate? We have got to abandon that sense of amazement in the face of creativity, as if it were a miracle if anybody created anything.” “The key question isn’t ‘What fosters creativity?’ But it is why in God’s name isn’t everyone creative? Where was the human potential lost? How was it crippled? I think therefore a good question might be not why do people create? But why do people not create or innovate? We have got to abandon that sense of amazement in the face of creativity, as if it were a miracle if anybody created anything.” —Abe Maslow

51. “Every child is born an artist. The trick is to remain an artist.” —Picasso

52. Muhammad Yunus: “ All human beings are entrepreneurs. When we were in the caves we were all self- employed... finding our food, feeding ourselves. That’s where human history began... As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/The News Hour—PBS/1122.2006

53. THE SECRETS OF EXCELLENCE VI: THE ESSENCE OF ENTERPRISE.

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

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

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

57. Cause Space Decency service excellence servant leadership

58. THE SECRETS OF EXCELLENCE VII: SERVANT LEADERSHIP.

59. “Leaders ‘SERVE’ people. Period.” Robert Greenleaf, The Servant Leader “Leaders ‘SERVE’ people. Period.” In the spirit of Robert Greenleaf, The Servant Leader

60. EXCELLENCE AND ENTREPRENEURIAL ENTERPRISE AND HUMAN FREEDOM AND GROWTH: AND HUMAN FREEDOM AND GROWTH: Individual freedom + Creative education + Entrepreneurial capitalism = Good service + Good product + Good people + Good Citizenship + Room to Experiment and Fail and Grow + Commitment to Excellence + Servant leaders = Maximum Profit + Economic Growth + Realized Human Potential. Good Citizenship + Room to Experiment and Fail and Grow + Commitment to Excellence + Servant leaders = Maximum Profit + Economic Growth + Realized Human Potential.

61. EXCELLENCE. CIRCA 1978. CIRCA 1982. CIRCA 1993. CIRCA 1996. CIRCA 2006. CIRCA 2004-2007. CIRCA 2007. CIRCA 15 OCTOBER 2007.

62. 1978.

63. Hard Is Soft (# s ) Soft Is Hard (people)

64. “The 7-S Model” Strategy Structure Systems Style Skills Staff Super-ordinate goal “The 7-S Model” Strategy Structure Systems Style Skills Staff Super-ordinate goal

65. 1982.

66. Excellence1982: The Bedrock “Eight Basics” 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”

67. “Breakthrough” 82* People! People!Customers!Action!Values! *In Search of Excellence

68. $85,000 $140,050 ExIn*: 1982-2002/Forbes.com DJIA : $10,000 yields $85,000 EI : $10,000 yields $140,050 *Forbes/ Excellence Index /Basket of 32 publicly traded stocks

69. 1993.

70. $55B

71. 1996.

72. “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

73. 2006.

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

75. 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

76. 2004- 2007.

77. NZ = Design Excellence “Better By Design”: A National Strategy NZ = Design Excellence

78. “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

79. Taiwan, Your Partner in InnoValue Taiwan, Your Partner in InnoValue Poster/Bucharest/03.06

80. 2007.

81. Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/ must necessarily create organizations which are … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed … In passionate pursuit of jointly perceived soaring purpose and personal and community and client service Excellence.

82. … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

83. 16 OCTOBER 2007.

84. “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. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)