1. Tom Peters’ EXCELLENCE. ALWAYS. Cims./Affinion/D’Angleterre/ Copenhagen/05.10.2006

2. Carl Sewell/1983 Lifetime Value. No Cars in the Showroom. Putting the Mechanics First. Carl Sewell. Stew Leonard. Hal Rosenbluth. Disney U. Buck Rodgers. (UNB&T. Commerce Bank. Starbucks. Whole Foods. Wegmans.)

3. tompeters.com Slides* at … tompeters.com *Also LONG

4. 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

5. BACKDROP. PITIFUL PERFORMANCE. BASICS./K.I.S.S. VALUE-ADDED “LADDER.” WOMEN. BOOMERS. INNOVATION. TRY IT. LIFE LESSONS. 4/40. LEADERSHIP. PASSION. LEADERSHIP. IMMODEST ASPIRATIONS. LEADERSHIP. DRILL.

6. YOU DON’T GET BETTER BY BEING BIGGER. YOU GET WORSE.

7. 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

8. Low Risk 41% 13% High Risk35% 73% S&P Stability Ratings* 1985 2006 Low Risk 41% 13% Average Risk 24% 14% High Risk 35% 73% *Likelihood of stable long-term earnings growth Source: Fortune (2 October 2006)

9. YOU DON’T GET BETTER BY BEING BIGGER. YOU GET WORSE.

10. You don’t get better by being bigger. You get worse.” “ I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.” —Dick Kovacevich/Wells Fargo

11. ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ” “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ” —Mark Sirower, The Synergy Trap

12. Our challenge is to create markets. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, CEO, Reuters

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

14. C.E.O. C.D.O. C.E.O. to C.D.O.

15. BASICS K.I.S.S.

16. FordGM Chrysler bad “ Ford, GM and Chrysler do not just make cars expensively … they make bad cars expensively.” —Investec analyst, International Herald, 0805.06

17. BASICS K.I.S.S.

18. People. Product. Clients. Execution. Enthusiasm. Excellence.

19. Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. 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

20. BASICS K.I.S.S.

21. People. Product. Clients. Execution. Enthusiasm. Excellence. Resilience.

22. “ 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

23. BASICS K.I.S.S.

24. People. Product. Clients. Execution. Enthusiasm. Excellence. Resilience. Relentlessness.

25. not to turn back “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

26. BASICS K.I.S.S.

27. People. Product. Clients. Execution. Enthusiasm. Excellence. Resilience. Relentlessness. Senility.

28. 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

29. BASICS K.I.S.S.

30. People. Product. Clients. Execution. Enthusiasm. Excellence. Resilience. Relentlessness. Senility.

31. EXCELLENCE. THE “SECRETS.”

32. 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”

33. $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

34. EXCELLENCE. REVENUE. MATTERS. MOST.

35. “Analysts … preferred cost cutting They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!” “Analysts … preferred cost cutting, as long as they could see two or three years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell. They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!” —Dick Kovacevich, Wells Fargo

36. P = R – C

37. EXCELLENCE. VALUE ADDED. UP THE LADDER.

38. EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

39. $55B

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

41. OPPORTUNITY-SEEKING Gamechanging Solutions The Value-added Ladder/ OPPORTUNITY-SEEKING Gamechanging Solutions Services Goods Raw Materials

42. EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

43. “ 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

44. “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

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

46. EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

47. 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

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

49. “Dreams Come True”: IBM

50. EXCELLENCE. NEW MARKETS. ENORMOUS. OPPORTUNITIES.

51. EXCELLENCE. OPPORTUNITY. WOMEN.

52. EXCELLENCE. WOMEN BUY. EVERYTHING.

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

54. >50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) USA/F.Stats: Short ’n (Very) Sweet >50% of stock ownership, $13T total wealth (2X in 15 years) >$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg) 57% BA degrees (2002); = ed & social strata, no wage gap 60% Internet users; >50% primary users of electronic equipment >50% biz trips WimBiz: Employees > F500; 10M+: 33% all US Biz Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal 60% work; 46M (divorced, widowed, never married) Source: Fara Warner, The Power of the Purse

55. The Perfect Answer Jill and Jack buy slacks in black…

57. knows more man low IQ hard of hearing no right speaking to him “ She knows more about the [Volvo] than the sales man 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

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

59. EVEolution: The Eight Truths of Marketing to Women EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

60. Connecting Your Female Consumers to Each Other Connects Them to Your Brand EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

61. They join them.” “Women don’t buy brands. They join them.” EVEolution

62. 2.6 vs. 21

63. 1. Men and women are different. 2. Very different. 3. VERY, VERY DIFFERENT. 4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. 5. Women buy lotsa stuff. 6. WOMEN BUY A-L-L THE STUFF. 7. Women’s Market = Opportunity No. 1. 8. Men are (STILL) in charge. 9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.

64. 10. Women’s Market = Opportunity No. 1.

65. “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15

66. EXCELLENCE. WOMEN. DOMINATE. ECONOMIC. GROWTH.

67. “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

68. “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, 10.03.2006

69. Primary markets/Everything Greater global workforce participation rate Higher wages Business “decision makers” Women-owned businesses Impact! Add It Up! Primary markets/Everything (“Men buy things that other men will buy for women. I buy things that women want.”— successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.) Greater global workforce participation rate (“bigger contributor to GDP growth than technology, China, India”—Economist) Higher wages (more seniority, promotions—even if not to CEO; greater pay equity—even if not equal) Business “decision makers” (more seniority, promotions—even if not to CEO) Women-owned businesses (answer to the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

70. 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. 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]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness aligned with new organizational effectiveness imperatives. imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. as well as consumer goods. So what exactly is … the point of men?

71. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

72. COROLLARY. EXCELLENCE. WOMEN. RULE.

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

74. Women’s 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 Women’s 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”

75. EXCELLENCE. OPPORTUNITY. BOOMERS. GEEZERS.

76. -1% +21% +47% 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47% )

77. BoomerBucks! Boomer turns 50: every 7 seconds. 2009: majority of U.S. households headed by someone over 50. 2006- 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. 2006: 1 in 5 adults is F, over 50. Women between 50-70 who are single: 35%. Age 45-54: highest average income, $59, 021 (national average is $42,209). FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64 (4X men in same category). Women, age 60-64: 50% still in workforce. Highest net worth: families, 55-64 ($182,000). People over 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. Next 2 decades: BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLION (“largest intergenerational transfer of wealth in history”). —Marti Barletta, PrimeTime Women

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

79. “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder, Ageless Marketing

80. “Older people have an image problem. As a culture, we’re conditioned toward youth. … When we think of youth, we think ‘energetic and colorful;’ when we think of middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we just don’t think. … The financial numbers are absolutely inarguable—the Mature Market has the money. Yet advertisers remain astonishingly indifferent to them. …” “Older people have an image problem. As a culture, we’re conditioned toward youth. … When we think of youth, we think ‘energetic and colorful;’ when we think of middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we just don’t think. … The financial numbers are absolutely inarguable—the Mature Market has the money. Yet advertisers remain astonishingly indifferent to them. …” —Marti Barletta, PrimeTime Women

81. EXCELLENCE. INNOVATE. OR. DIE.

82. Only the constant pursuit of innovation can ensure long-term success.” “A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success.” —Daniel Muzyka, Dean, Sauder School of Business, University of British Columbia

83. We become who we spend time with!

84. 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 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

85. 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

86. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.

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

88. 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 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

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

90. “Experiment fearlessly” “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

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

92. tolerate [encourage?] failure

93. “FAIL, FAIL AGAIN. FAIL BETTER.” “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett

94. “Fail. Forward. Fast.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania

95. “Fail faster. Succeed Sooner.” “Fail faster. Succeed Sooner.” David Kelley/IDEO

96. Sam’s Secret #1!

97. “Reward Punish “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

98. what we do!

99. “I don’t intend to be known as the ‘King of the Tinkerers.’ ” CEO, large financial services company

100. Big Big “ Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Big Things.” —Roger Enrico, former Chairman, PepsiCo

101. systematically set out to build entirely new industries” “[Immelt] is now identifying technologies with which GE will … systematically set out to build entirely new industries” —Strategy+Business, Fall 2005

102. EXCELLENCE. 4/40.

103. 4/40

104. De-cent- ral-iz- a-tion!

105. 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s

106. Ex-e- cu-tion!

107. systematic process “ Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

108. Ac-count- a-bil-ity!

109. “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” “GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.” —Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

110. 6:15A.M.

111. EXCELLENCE. BEDROCK. LEADERSHIP.

112. EXCELLENCE. ENTHUSIASM. ENERGY. PASSION.

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

114. “Most important, he upped the energy level at Motorola.” “Most important, he upped the energy level at Motorola.” —Fortune on Ed Zander/08.05

115. Enthusiasm Energy Exuberance Voracious Curiosity Irritability/Dis-satisfaction Relentlessness Self-reliance “Closer” (Execution) excellence

116. EXCELLENCE. SHOWING UP.

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

118. EXCELLENCE. STRETCH.

119. 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

120. BACKDROP. PITIFUL PERFORMANCE. BASICS./K.I.S.S. VALUE-ADDED “LADDER.” WOMEN. BOOMERS. INNOVATION. TRY IT. LIFE LESSONS. 4/40. LEADERSHIP. PASSION. LEADERSHIP. IMMODEST ASPIRATIONS. LEADERSHIP. DRILL.

121. EXCELLENCE. DRILL.

122. You only find oil if you drill wells. You only find oil if you drill wells. —The Hunters, by John Masters, Canadian O & G wildcatter

123. BACKDROP. PITIFUL PERFORMANCE. BASICS./K.I.S.S. VALUE-ADDED “LADDER.” WOMEN. BOOMERS. INNOVATION. TRY IT. LIFE LESSONS. 4/40. LEADERSHIP. PASSION. LEADERSHIP. IMMODEST ASPIRATIONS. LEADERSHIP. DRILL.