1. Tom Peters’ Re-Imagine:Excellence NOW NOW World Strategy Forum The New Rules: Reframing Capitalism Seoul/13 June 2012 (slides @ tompeters.com and excellencenow.com)

2. 1977-1982

3. “Not Dead Yet” “Not Dead Yet” BRIC/2011: $11T/$4K per capita USA/2011: $16T/$48K per capita USA/2000: 4% population/30% world GDP USA/2010: 4% populattion/28% world GDP USA productivity: ’07/1.7%; ’08/2.1%; ’09/5.4%; ’10/2.4%; ’11/4.1% FDIC institutions: 4Q/2008/-$38B; 2Q/2011/+$29B 1/2008 to 9/2011: USA consumer savings 0% to 6%/$2.1T saved Foreign Direct Investment: 2003: $64B; 2008: $328B; 2009: $134B; 2011: $200B+ Exports/2009: USA $1.53T ($1.06T goods, $0.47T services); Germany $1.36T; China $1.33T USA/Refined petroleum products/1Q 2011: Imports 2.16M BPD; Exports 2.49M BPD “New economy”: Apple (>Exxon) + Google + Facebook ~ $1T market cap Source: Daniel Gross, The Myth of American Decline and the Growth of a New Economy

4. iPad/$4 billion of $300 billion negative USA trade balance with China (2011)

5. Cost/Profit Components: Total labor 7% (Chinese labor: 2%) Materials 31% Distribution: 15% Profit: 47% Landed iPad cost: $275 = Imputed USA negative trade balance with China (Actual China cost: $10) Source: Personal Computing Industry Centre (Economist)

6. Cost*/Profit Components: Total labor 7% (Chinese labor: 2%) Materials 31% Distribution: 17% Profit: 47% Landed iPad cost: $275 = Imputed USA negative trade balance with China (Actual China cost: $10) *Biggest non-USA component: Korea Source: Personal Computing Industry Centre (Economist)

7. Q3 2011/BLS +3.1/ Non-farm productivity growth +3.8/ Non-farm output +0.6/ Non-farm hours worked +5.4/ Manufacturing productivity +4.7/ Manufacturing output / Manufacturing hours worked Source: Bureau of Labor Statistics/03 November 2011 Q3 2011/BLS +3.1/ Non-farm productivity growth +3.8/ Non-farm output +0.6/ Non-farm hours worked +5.4/ Manufacturing productivity +4.7/ Manufacturing output - 0.6/ Manufacturing hours worked Source: Bureau of Labor Statistics/03 November 2011

8. It’s Getting a Little Strange Out* DelFly/lighter than your wedding ring (Economist 0602) wedding ring (Economist 0602) Oscar Pistorius’ sprinting acumen/approved for London (WSJ 0602) London (WSJ 0602) *See Ray Kurzweil, The Singularity Is Near: When Humans Transcend Biology; key chapter, “GNR: Three Overlapping Revolutions” (GNR: Genetics, Nanotechnology, Robotics)

9. “In some sense you can argue that the science fiction scenario is already starting to happen. The computers are in control. We just live in their world.” —Danny Hillis, Thinking Machines

10. “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computer-generated robots will take over the world.” – Stephen Hawking

11. Tom Peters’ Re-Imagine:Excellence NOW NOW World Strategy Forum/The New Rules: Reframing Organization Effectiveness* (*McKinsey OE Practice: 1977-present)

12. “Tom, let me tell you the definition of a good lending officer. …

13. “Tom, let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesn’t go in or any such thing, just drives by and takes a look.”

14. 25

15. MBWA

16. M anaging B y W andering A round

17. “The art of war does not require complicated maneuvers; the simplest are the best and common sense is fundamental. From which one might wonder how it is generals make blunders; it is because they try to be clever.” —Napoleon is because they try to be clever.” —Napoleon

18. Excellence

19. 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

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

21. Hard is Soft. Soft is Hard.

22. “The first step is to measure what can easily be measured. This is okay as far as it goes. The second step is to disregard that which cannot be measured, or give it an arbitrary quantitative value. This is artificial and misleading. The third step is to presume that what cannot be measured is not very important. This is blindness. The fourth step is to say that what cannot be measured does not really exist. This is suicide.” —Daniel Yankelovich (from Enough!, by Jack Bogle)

23. “Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies

24. or it's simply not worth doing

25. “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

26. Oath of Office: Managers/Servant Leaders Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul. the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the haul is a product of brilliantly serving, over the long haul, the people who serve the customer. people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. serve the ultimate customer. We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence Development and Success and Aspiration to Excellence business.” business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching “they” [each and every one of our colleagues] are energetically marching toward Excellence. toward Excellence.Period.

27. EMPLOYEES FIRST, CUSTOMERS SECOND: Turning Conventional Management Upside Down Vineet Nayar/CEO/HCL Technologies

28. The Memories That Matter The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside stellar accomplishments inside or outside the company. the company. The (no more than) two or three people you developed who went on to create stellar institutions of their own. create stellar institutions of their own. The longshots (people with “a certain something”) you bet on who surprised themselves—and your peers. surprised themselves—and your peers. The people of all stripes who 2/5/10/20 years later say “You made a difference in my life,” later say “You made a difference in my life,” “Your belief in me changed everything.” “Your belief in me changed everything.” The sort of/character of people you hired in general. (And the bad apples you chucked out despite some stellar traits.) apples you chucked out despite some stellar traits.) A handful of projects (a half dozen at most) you doggedly pursued that still make you smile and which fundamentally changed the way still make you smile and which fundamentally changed the way things are done inside or outside the company/industry. things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming to The supercharged camaraderie of a handful of Great Teams aiming to “change the world.” “change the world.”

29. “The four most important words in any organization are …

30. The four most important words in any organization are … “What do you think?” are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com

31. “The doctor interrupts after …* after …* *Source: Jerome Groopman, How Doctors Think

32. 18 …

33. 18 … seconds!

34. [An obsession with] Listening is... the ultimate mark of Respect. of Respect. Listening is... the heart and soul of Engagement. Listening is... the heart and soul of Kindness. Listening is... the heart and soul of Thoughtfulness. Listening is... the basis for true Collaboration. Listening is... the basis for true Partnership. Listening is... a Team Sport. Listening is... a Developable Individual Skill.* (*Though women are far better at it than men.) are far better at it than men.) Listening is... the basis for Community. Listening is... the bedrock of Joint Ventures that work. Listening is... the bedrock of Joint Ventures that grow. Listening is... the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of Communication* (*Which is in turn Attribute #1 of organizational effectiveness.) organizational effectiveness.)[cont.]

35. Human creativity is the ultimate economic resource

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

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

38. “ Thomas Stanley has not only found no correlation between success in school and an ability to accumulate entrepreneurial wealth, he’s actually found a negative correlation. ‘It seems that school- related evaluations are poor predictors of economic success,’ Stanley concluded. ‘What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers.’ Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” Ye gads: “ Thomas Stanley has not only found no correlation between success in school and an ability to accumulate entrepreneurial wealth, he’s actually found a negative correlation. ‘It seems that school- related evaluations are poor predictors of economic success,’ Stanley concluded. ‘What did predict success was a willingness to take risks. Yet the success-failure standards of most schools penalized risk takers.’ Most educational systems reward those who play it safe. As a result, those who do well in school find it hard to take risks later on.” —Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins

39. Up, Up, Up, Up the Value-added Ladder …

40. Design WINs ! APPLE market cap > Exxon Mobil* *August 2011

41. “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” —Steve Jobs

42. “Only one company can be the cheapest. All others must use design.” —Rodney Fitch, Fitch & Co. Source: Insights, definitions of design, the Design Council [UK]

43. Hypothesis: Men cannot design for women’s needs !!??

44. … this will be the woman’s century …

45. “I speak to you with a feminine voice. It’s the voice of democracy, of equality. I am certain, ladies and gentlemen, that this will be the women’s century. In the Portuguese language, words such as life, soul, and hope are of the feminine gender, as are other words like courage and sincerity,” “I speak to you with a feminine voice. It’s the voice of democracy, of equality. I am certain, ladies and gentlemen, that this will be the women’s century. In the Portuguese language, words such as life, soul, and hope are of the feminine gender, as are other words like courage and sincerity,” —President Dilma Rousseff of Brazil, 2011, 1st woman opening keynote, United Nations General Assembly United Nations General Assembly

46. “Forget China, India and the Internet : Economic Growth Is Driven by Women.” Source: Headline, Economist

47. W > 2X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09

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

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

50. “Headline 2020: Women Hold 80 Percent of Management and Professional Jobs” Source: The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 Years, James Canton

51. 22/1

52. 22/1/10 (USA adult population will have grown by 23 million between 2006 and 2016. Ages 18-49 will have grown by one million, age 50+ will have grown by 22 million) by 22 million)

53. 1/8/20

54. Date: 1/1/11 Activity: USA Boomers start turning 65 Rate: 1 every 8 seconds Duration: 20 years Impacted: EVERYTHING

55. 44-65: “New Customer Majority” Source: Ageless Marketing, David Wolfe & Robert Snyder

56. 7/13

57. Up, Up, Up, Up the Value-added Ladder …

58. IB M to I B M

59. Planetary Rainmaker-in-Chief! “[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users— and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year — that technology companies have never been able to touch.” —Fortune

60. “Satisfaction” vs. “Success” “ ‘Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader

61. “WHAT CAN BROWN DO FOR YOU?” “It’s all about solutions. We talk with customers about how to run better, stronger, cheaper supply chains. We have 1,000 engineers who work with customers …” —Bob Stoffel, UPS senior exec

62. “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008

63. MasterCard Advisors

64. 1 /46

65. “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

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

67. Lesson46: WTTMTW

68. WhoeverTriesTheMostThingsWins

69. Better yet: WTTMTTFW

70. WhoeverTriesTheMostThingsTheFastestWins

71. “Experiment fearlessly” Tactic #1 “relentless trial and error” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) “Experiment fearlessly” Source: Bloomberg BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”— Tactic #1 “relentless trial and error” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10)

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

73. “Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the rose’s ‘core business.’ Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will never have the biggest roses, but you have a much- enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resources—the extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier in the long run.” —Arie De Geus, The Living Company

74. The Power of Co-creation

76. The Bottleneck …

77. 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 “ 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

78. “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith

79. … and just wait

80. I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, The answer seems obvious … “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 … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

81. 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

82. “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

83. “Data drawn from the real world attest to a fact that is beyond our control: —Norberto Odebrecht, Education Through Work “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

84. MittELstand* ** MittELstand* ** *“agile creatures darting between the legs of the multinational monsters” (Bloomberg BusinessWeek) **E.g. Goldmann Produktion

85. “Be the best. It’s the only market that’s not crowded.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin Independent Stores in America, George Whalin

86. 14,000 20,000 30

87. 14,000/ e Bay 20,000/Amazon 30/Craigslist

88. 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. Avoid moderation! 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!