Tom Peters at XAlways Inc. 500 Conference

LONG Tom Peters’ X25* EXCELLENCE. ALWAYS. 25 th Annual Inc. 500 Conference World’s #1 City/20 January 2007 * In Search of Excellence 1982-2007

Happy 25! 1982-2007 Inc. In Search of Excellence

Built to Last vs Built to Rock the World

TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)

Slides* at … tompeters.com *also “long”

Inc. Home Page: Errata

“ Women in Business”

“ Men in Business”

“ Forget China , India and the Internet : Economic Growth Is Driven by Women .” —Headline, Economist , April 15, 2006, Leader, page 14

A DOZEN UNASSAILABLE REASONS WOMEN RULE/WILL RULE Women make [all] the financial decisions. Women make better financial decisions. Women control [all] the [world’s] wealth. Women [substantially] outlive men. Women [girls] are waxing; men [boys] are waning. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are [exceptionally] well aligned with new organizational effectiveness & value-added imperatives. Women are [much] better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is … the point of men ?

“ 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

EXCELLENCE. ALL YOU NEED TO KNOW.

7X. 730A-800P. F12A. * *Not to mention the “Red key”

EXCELLENCE. ALL. YOU. NEED. TO. KNOW. ANY WHERE. ANY MARKET. ANY TIME.

Jim’s Group

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 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’s book: What Will They Franchise Next? The Story of Jim’s Group

EXCELLENCE. THE WORD.

S y non y ms Purity Transcendence Virtue Elegance Majesty Anton y ms Mediocrity

EXCELLENCE. STARTERS. BASICS. K.I.S.S.

Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through Peo p le 5. Hands On , Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

“ It was a blinding flash of the obvious!”

EXCELLENCE. ASPIRATION.

“ Why in the world did you go to S iberia ?”

Enter p rise * ** (*at its best): An emotional , vital , innovative , joyful , creative , entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others . *** **Excellence. Always. ***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE. INNOVATE. OR. DIE.

“ 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

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

The last word: There is no last word.

Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Home Depot … Microsoft … GE

InnoTac64

try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.

do things.

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

drill.

“ 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

try things.

“ 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

Screw. things. Up.

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

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

Sam’s Secret #1!

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

try. Miss. try.

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

just. %&*%$#@. Do it.

S.A.V.

duh.

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

EXCELLENCE. 4/40.

4/40

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

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

“ If if feels painful and scary—that’s real delegation” —Caspian Woods, small biz owner

Ex-e- cu-tion!

“ Execution is the j ob of the business leader .” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

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

Ac-count-a-bil-ity!

“ 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)

6:15A.M.

EXCELLENCE. VALUE ADDED. UP THE LADDER.

The Value-added Ladder/ ECSTASY Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

Tattoo Brand : What % of users would tattoo the brand name on their body?

To p 10 “Tattoo Brands”* Harley .… 18.9% Disney .... 14.8 Coke …. 7.7 Google .... 6.6 Pepsi .... 6.1 Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound , Martin Lindstrom

EXCELLENCE. NEW MARKETS. ENORMOUS. OPPORTUNITIES.

women. BOOMERS. GEEZERS.

“ Economic Growth Is Driven by … Women .” — Headline, Economist , April 15, 2006, Leader, page 14

????????? Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (90%) All consumer purchases … 83% Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80%

The “91% Factor”! More than 9 in 10 women age 35 - 49 say they either make or at least e q uall y influence their household purchases of home electronics . Source: Andrea Learned, co-author, Don’t Think Pink

94 % of loans to … women * * M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

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

Women > 50% of Household Income in >50% of households. In 48% of the 55% of households/married couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their spouse. Women control 51% of private wealth in the U.S.; head 40% of households with >$600K assets; 47% of market investors are women. Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman. Commercial: 51% purchasing managers are women. Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women: 70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% of cars (primary influence >80%). Source: Don’t Think Pink: What Really Makes Women Buy—and How to Increase Your Share of This Crucial Market , Lisa Johnson & Andrea Learned

Women Household spending: 80% Investment decisions: 53% Home improvement purchase decisions: 80% New cars: 60%+ Computers: 60% Managers and professionals, overall: 51% New businesses started: 70% * (*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.) Source: Marti Barletta, PrimeTime Women (2007)

P-l-e-a-s-e Read … Fara Warner : The Power of the Purse

Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/ The Power of the Purse

U.S. firms owned or controlled by Women: 10.6 million ( 48% of all firms) Growth rate of Women-owned firms vs all firms: 3X Rate of jobs created by Women-owned firms vs all firms: 2X Ratio of total payroll of Women-owned firms vs total for Fortune500 firms: >1.0 Ratio of likelihood of Women-owned firms staying in business vs all firms: >1.0 Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all firms: 2X Source: Margaret Heffernan, How She Does It

women. BOOMERS. GEEZERS.

!!!!!!!!!!!!!!!!! “ People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

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

Average # of cars purchased per household, “lifetime”: 13 Average # of cars bought per household after the “head of household” reaches age 50: 7 Source: Marti Barletta, PrimeTime Women

EXCELLENCE. BEDROCK. LEADERSHIP. 9Ps.

PURPOSE . PASSION . Potential . Presence . Personal . PERSISTENCE . PEOPLE . Potent . Positive .

“ People want to be part of something larger than themselves . They want to be part of something they’re really proud of, that they’ll fight for , sacrifice for , trust .” — Howard Schultz, Starbucks ( IBD /09.05)

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

“ The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being .” —Robert Altman, Oscar acceptance speech

25

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

“ It’s alwa y s showtime.” —David D’Alessandro, Career Warfare

Relentless : “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

“ Leaders ‘ do ’ people. Period.” —Anon.

“ Leaders ‘ SERVE ’ people. Period.” —Anon.

Servant Leadership /Robert Greenleaf 1. Do those served grow as persons? 2. Do they, while being served, become healthier wiser, freer, more autonomous, more likely themselves to become servants?

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 !

“ A typical day at the office for me begins by asking, ‘ What is impossible that I am going to do today ?’” —Daniel Lamarre, president, Cirque du Soleil

On NELSON: “[other] admirals more frightened of losing than anxious to win”

“ 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 possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

EX CELLE ALW AYS .

Tom Peters at XAlways Inc. 500 Conference

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