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

2. SECTION ONE OF TWO Tom Peters’ X25* EXCELLENCE. ALWAYS. KPMG/Nairobi/21July2007 * In Search of Excellence 1982-2007

3. EX CELLEN ALW AYS .

4. “ 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)

5. “ Strive for Excellence. Ignore success.” —Bill Young, race car driver (courtesy Andrew Sullivan)

6. profits, people or people, profits?

7. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

8. “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change .” —Charles Darwin

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

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

11. Life 101: A 40-year Reflection Go on offense. Give everybody a shot. Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a “success.” Extract “lessons learned” or “best practices.” Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs today’s franchise. Centralize. Calcify. Install taller walls. Write more rules. Become irrelevant and-or die.

12. Final slide set will appear at … tompeters.com

13. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part one (of 7) “all you need to know” (dwelling on the obvious) not your father’s world introduction to excellence. 18 june 2007

14. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part two (of 7) innovate. Or. Die. 18 june 2007

15. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part THREE (of 7) up , up, up, up … the value added ladder (solutions-experiences-dreams-lovemarks) 18 June 2007

16. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master/ Excellence. Always./ part FOUR (of 7) “new” Markets (Stupendous Opportunity) 18 June 2007

17. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master Excellence. Always. part FIVE (of 7) people! (Brand you. Talent. Health. Education. Leadership.) 18 june 2007

18. NOTE: To appreciate this presentation, you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Master* Excellence part SIX (of 7) excellence. summaries. Lists. 18 june 2007

19. Part seven Extended Talent50 & Leadership50 0618.07

20. part one

21. EXCELLENCE. ASPIRATION. 2006.

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

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

24. The Peters Princi p les : Enthusiasm. Emotion. Excellence . Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow!

25. Enterprise * ** (*at its best): An emotional , vital , innovative , jo y ful , creative , entre p reneurial endeavor that elicits maximum concerted human potential in the wholehearted service of others .** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

26. “ BUSINESS IS ABOUT POWER.” —Joanne Lipman, editor, on Portfolio

27. TP: “BUSINESS IS ABOUT ...”

28. “ enterprises that Matter & change the game … offer solutions & experiences that surprise , amaze , and transform perceptions of what’s possible —and stick like super-glue in customers’ minds.* such offerings are brilliantly conceived and flawlessly delivered by unconventional , creative , hyper - committed , energetic talent from within & outside the organization.” —Tom Peters E.g.: Apple, Whole Foods, Cirque du Soleil, Starbucks, Wegmans, London Drugs, Griffin Hospital/Planetree Alliance, John Laing Homes, RE/MAX, Sewell Autos, Jim’s Group, The Met/Big Picture, Virgin, Commerce Bank, Google, Basement Systems Inc., Ford (circa 1917), IBM (circa 1970), Wannamaker’s (circa 1880)

29. “ To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials .” —Richard Branson

30. “ Make sure your executive team includes top talent in desi g n , en g ineerin g and manufacturin g, because that’s your only ! priority— to build ! Cars ! People ! Want ! to buy ! . Hot styling sells them and quality keeps them sold.” — Lee Iacocca , Where Have All the Leaders Gone?

31. July 2007. Africa. Excellence. Always.

32. Guide Attributes Camp #2 Camp #1, 3 Knowledge B+ B Curiosity B B+ Engagement D A- Eye contact D- A “People person” D A People reader D- B+ Mental-emotional agility D B+ Consultative skills D- B+ Storyteller D- C+ “Would you recommend NO With to others?” Way! Pleasure!

33. Alpha & Omega/Fred Reichheld: “Would you recommend to others?”

34. Garth Thompson: Skill 10%, Attitude 90%

35. “ A man without a smiling face must not open a shop.” —Chinese Proverb

36. William Donald Schaeffer Mayor of Baltimore He Cared.

37. >4S Wilderness Safaris

38. The Case of the Missing Sherry Glass.

39. Disney’s Parking Lot Attendants = Alpha and Omega

40. Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “ remember to tuck the shower curtain inside the bathtub”

41. “ substance” + attitude + Execution = Excellence

42. <TG W vs. >TG R [Things Gone WRONG /Things Gone RIGHT ]

43. “ Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been washed for the third time, the stone planters and the trees are well sprinkled with water, moss and lichens are shining with a fresh verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Oakakura, The Book of Tea

44. “ What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Oakakura, The Book of Tea

45. TP: “How to throw away $500,000 in one easy lesson!!”

46. Brand = Talent.

47. Guiding/Clients She … Chooses. Arranges. “Manages” attitude. Go-No go on repeat.

48. Guiding F: “I immediately establish rapport with the woman.” M: “Interesting notion …”

49. Bush Lesson #1: Giants attract the photographers, SME s do the work

50. The “New German Miracle”* = The “Old German Miracle” = Mittlestand** *Among other things, #1 in exports **”No doubt of it, tom [BASF exec/04.07]

51. Lisbon/New Biz: Weeks to … Minutes (!!!!)

52. Biodiversity Lesson #1: Need Giants and SME s

53. Bush Lesson #2: Even if you can-will “Win,” don’t attack if odds of a life-threatening injury are high

54. perdue, milliken, jim’s group, basement systems inc, guardsmark, PPI/Professional Parking Services Inc, Semco, Wegmans, John Laing, Commerce Bank, (Brazilian discounter), (Cairo Contractor), etc

55. Perdue, Milliken, Jim’s Group, Basement Systems Inc, Guardsmark, PPI/Professional Parking Services Inc, Semco, Wegmans, John Laing, Commerce Bank, (Brazilian discounter), (Cairo Contractor), etc: “Soft stuff”/ people, action, Execution, Experience

56. Leadership’s 13 th “P”: Promotion

57. PURPOSE . PASSION . Potential . Presence . Personal . pissed off . Playful . PERSISTENCE . PEOPLE . Peculiar . Potent . Positive .

58. Leadership’s 13 th “P”: Promotion

59. “ Intelligent” question: Pretty much know the answer. “Dumb” question: (1) Dumb (you perceived as fool) or (2) the source of a true insight/all knowledge. Axiom: No “dumb” questions, no progress!

60. All you need to know …

61. 25

62. You = Your calendar * *Calendars never lie

63. “ The one thin g you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know

64. All you need to know …

65. Thank you !!!

66. “ Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay

67. The Manager’s Book of Decencies : How Small /gestures Build Great Companies. —Steve Harrison, Adecco

68. This is it: All you need to know …

69. R.O.I.R

70. Measure #1: R.O.I.R. * * Return On Investment In Relationships

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

72. 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?

73. “ No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know

74. “ We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX

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

76. This is it: All you need to know …

77. “ Do one thing every day that scares you.” —Eleanor Roosevelt

78. “ 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

79. All you need to know …

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

81. All you need to know …

82. China’s share of global consumption/2005 : Cement … 47% Cotton … 37% Coal … 30% Steel … 26% Source: BusinessWeek /08.05

83. 26 m* *60,000/3 yrs

84. THREE BILLION NEW CAPITALISTS —Clyde Prestowitz

85. Let’s get on with the show …

86. Really, really All you need to know …

87. What makes God laugh?

88. People making plans!

89. 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.

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

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

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

93. Tom Peters’ X25* EXCELLENCE. ALWAYS. * In Search of Excellence 1982-2007

94. EXCELL- ENCE????

95. “ 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

96. “ Forbes100” from 1917 to 1987 : 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly under p erformed the market; just 2 (2%), GE & Kodak , out p erformed 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

97. Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only 7 were still on the list in 2004. The 1997 crisis “destroyed half of Korea’s 30 largest conglomerates.” Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

98. “ It is generally much easier to kill an or g anization than change it substantially.” —Kevin Kelly, Out of Control

99. C.E.O. to C.D.O.

100. Language! Language! Language! Language! Language! Language!

101. “ In-sane-ly-great”

102. Radicall y Thrillin g Lan g ua g e! “ Radically Thrilling.” — BMW Z4 (ad)

103. “ wow”

104. !

105. EXCELLENCE. CIRCA 1982.

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

107. The older I get the less boring the “basics” become!

108. 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

109. Importance of Success Factors by Various “Gurus”/(Unreliable) Estimates by Tom Peters Strategy Systems People Passion Porter 50 % 20 20 10 Drucker 25% 35 25 15 Bennis 25% 20 30 25 Peters 15% 20 35 30

110. MP: “Get the strategy right, the rest will take care of itself.” TP: “Get the people and execution right, the strategy will take care of itself.”

111. EXCELLENCE. 1982. Hard is soft. Soft is hard.

112. Hard Is Soft Soft Is Hard

113. Hard Is Soft (Plans, # s ) Soft Is Hard (people, customers, values, relationships))

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

115. “ The 7-S Model” “Hard S s ” (Strategy, Structure, Systems) “Soft S S ” (Style, Skills, Staff, Super-ordinate goal)

116. “ The 7-S Model” Strategy Structure Systems Style (Corporate “Culture,” “The way we do things around here”) Skills (“Distinctive Competence/s) Staff (People-Talent) Super-ordinate goal (Vision, Core Values)

117. EXCELLENCE. TOM. 2005.

118. Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective 1. Insanely Great & Quirky Talent. 2. Disrespect for Tradition. 3. Totally Passionate (to the Point of Irrationality) Belief in What We Are Here to Do. 4. Utter Disbelief at the BS that Marks “Normal Industry Behavior.” 5. A Maniacal Bias for Execution … and Utter Contempt for Those Who Don’t “Get It.” 6. Speed Demons. 7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.) 8. Passionate Hatred of Bureaucracy. 9. Willingness to Lead the Customer … and Take the Heat Associated Therewith. (Mantra: Satan Invented Focus Groups to Derail True Believers.) 10. “Reward Excellent Failures. Punish Mediocre Successes.” 11. Courage to Stand Alone on One’s Record of Accomplishment Against All the Forces of Conventional Wisdom. 12. A Crystal Clear Understanding of the power of a Good Story (Brand Power).

119. EXCELLENCE. THEM. US.

120. “ Them” “Us” Strategy EXECUTION Planning Action Marketing Selling/Sales Markets Customers Customers Clients Micro-segmentation Big Stuff (Women, Boomers) Cost minimization Revenue maximization Synergy/“Efficiencies” Decentralization “Strategic” supplier Pioneering supplier Process Project Effectiveness Excellence Men Women Leadership Management + Leadership Standardization Exceptionalism (53 = 53) Big clients COOL clients Prestigious Board INTERESTING Board

121. “ Them” “Us” Big Mid-size Growth by merger Organic growth Buy market share Create NEW markets Efficient, streamlined Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunity Fearful of losing Aggressive pursuit of winning Plan Prototype Careful evaluation Another prototype Revised plan Another prototype People/Employees Talent Effective HR department Rockin’ Talent Development Center of Excellence Benchmark against the Benchmark against the “best”-“industry leader” “coolest”

122. “ Them” “Us” Benchmark “Future”mark Orderly career progression “Up or Out” (PDQ) Head Heart IQ EQ “Professional” Passionate Stoic, humble leaders Noisy, emotional “characters” in charge Hire for Resume Hire for intangibles Measured-thoughtful Relentless, pig-headed approach determination Teamwork comes first Teamwork and disruptive individuals equal billing Listen to customers Lead customers Customer “involvement” Intimate-Seamless customer inter-twining

123. “ Them” “Us” MBM (Management MBWA by memo) MBA MFA Shareholder Value Great people-product rule comes first Work smart Work hard Built to last Built to Rock the World Reward successes Reward (EXCELLENT) failures Quality first! Design 1T Quality first Innovation 1T High-quality Jaw-dropping Experience transaction CVs demo consistent CVs feature Magic Moments performance Good grades Cool stuff Operational excellence World-rocking INNOVATION

124. “ Them” “Us” Brand Lovemark Best analysis wins Best STORY wins “Beyond politics” Politics-is-life, the rest is details Outsource Bestsource “Motivate” Send on QUESTS “Motivate” Invite Measured language HOT language Product-Service Gamechanging SOLUTION, Thrilling EXPERIENCE, DREAM come true, LOVEMARK Pastel Technicolor Better Different “Mission success” “Mission EXCELLENCE” Very good EXCELLENCE. ALWAYS.

125. good words. Bad words .

126. Words that ma y NOT be used in m y p resence : “Motivate”

127. “ In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

128. Words that ma y NOT be used in m y p resence : “Marketing”

129. Sell Sell Sell

130. all you need to know

131. EXCELLENCE. “the rules.”

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

133. 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)

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

135. Cause Space Decency service/experience excellence servant leadership

136. Hire Great People (Resilient, Passionate) Try a Lot of Stuff (S.A.V./R.F.A.) aCCEPT NO LESS THAN EXCELLENCE/PURSUE Wow! enjoy It While It Lasts

137. pursue a mission that rocks the world (Pharmaceuticals, Moldy basements) Hire awesome / weird People for 100% of jobs (Resilient, Passionate) (Wegmans) (Women RULE!) give ’em lots of room to experiment , fail , grow make “ respect ” “ decency ” “ integrity ” our watchwords try a Lot of Stuff, fast tempo (S.A.V./Screw Around Vigorously, R.F.A./Ready. Fire. Aim.) Emphasize revenue (Organic growth, Sales/“Top line” rules) have fun /exude joy demand excellence /Make accountability instinctive (“Insane” standards for our mates’ and community’s sake) never, never forget the “ it ” (It’s the PRODUCT, Stupid.) (25!) be “ of [‘gaspworthy’] service ” (Cirque du Soleil is our standard— “even” in finance.) (My customer is my partner.) (Remember “She”; remember “Me.”) (“Servant”/“Host” Leadership) Have effective/imaginative/minimalist infrastructure (K.I.S.S./Keep It Simple, Stupid) (Systems/No bull: beauty, grace, elegance) re - imagine as “routine” ” enjoy It While It Lasts

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

139. X + 6: The “7E s ”

140. Exuberance! Energy! Empathy! Engagement! Empowerment! Execution! Excellence!

141. EXCELLENCE. ASPIRATION. UNIVERSAL.

142. Jim’s Group

143. EX CELLE ALW AYS . End. PART ONE .

144. part two

145. EXCELLENCE. INNOVATE. OR. DIE.

146. EXCELLENCE. INNOVATION. THE REAL STORY. Tom Peters/03.29.2007

147. “ Hard” Stuff/Analysis & planning: 25 % “Soft” Stuff/people & Politics & Passion & execution: 75 %

148. “ A pattern emphasized in the case studies in this book is the degree to which powerful competitors not onl y resist innovative threats, but actuall y resist all efforts to understand them , preferring to further their positions in older products. This results in a surge of productivity and performance that may take the old technology to unheard of heights. But in most cases this is a sign of impending death.” — Jim Utterback , Mastering the Dynamics of Innovation

149. “ Recently I asked three corporate executives what decisions they had made in the last year that would not have been made were it not for their corporate plans. All had difficulty identifying one such decision. Since all of the plans are marked ‘secret’ or ‘confidential,’ I asked them how their com p etitors mi g ht benefit from p ossession of their p lans. Each answered with embarrassment that their com p etitors would not benefit .” —Russell Ackoff (from Henry Mintzberg, The Rise and Fall of Strategic Planning )

150. “ Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

151. BIG??? EXCELLENCE?

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

153. “ 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)

154. “ 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

155. D aimler. And D umb. Both Start with “ d .”

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

157. DaimlerChrysler/’98-’07: Duh , Duh , Duh , Duh and … Duh Manifold Synergies / No Severe Scale limits/ Yes Culture clashes/ Yes Rushmorean ego issues/ Yes Customer acceptance /No

158. $10,000,000/Day

159. “ Mr Zetsche, head of Chrysler from 2000 to 2005, denied he should take any responsibility for the U.S. carmaker’s troubles …” — Financial Times /05.29.07

160. EXCELLENCE. INNOVATE. OR. DIE.

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

162. Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” * Fortune , article on “Most Admired Global Corporations”

163. “ Companies have defined so much ‘best practice’ that they are now more or less identical.” —Jesper Kunde, Unique Now ... Or Never

164. InnoTacs

165. revenue matters most

166. “ Our whole story is growing revenue.” —Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting)

167. The Commerce Bank Model “cost cutting is a death spiral.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman

168. The Commerce Bank Model “ over -invest in our people, over -invest in our facilities.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry , Vernon Hill & Bob Andelman

169. We become who we hang out with 1

170. 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

171. Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks . Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)

172. “ Normal” = “o for 800”

173. “ 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 to p!” — Gary Hamel/ Harvard Business Review

174. Find ’em!

175. “ Some people look for things that went wrong and try to fix them. I look for things that went right , and try to build off them.” —Bob Stone (Mr ReGo)

176. “ Somewhere in your organization, groups of people are alread y doin g thin g s differentl y and better. To create lasting change, find these areas of positive deviance and fan the flames .” —Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

177. Demos! Heroes! Stories!

178. Find ’em!

179. Innovation “Tool”/“Source” # 1: Pissed Off Person/ People

180. F(Anger/Passion) >>>> f(Pushback from Threatened Fat-cats & Bureau-crats)

181. send ’em on a quest!

182. Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they ( and their mentors-teachers-leaders) had never dreamed existed —and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations!

183. “ 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

184. Women as innovation force!

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

186. 94 % of loans to … women * * M icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

187. Women: Principal Change Agents/ Health, family & Finance

188. Concoct a Parallel universe!

189. “ Parallel Universe” … China!!!!!!!

190. “ SkunkWorks”/ “ParallelUniverse” “the 1% solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC )

191. Speed/ Tempo/ is-it

192. “ the Fed Ex Economy ” —headline/ New York Times

193. “ Any3”: Anything/ Anywhere/ Anytime

194. Power Tools For Power Strategies

195. Go for the Bold * Bold /Aggressive/$$$$ * Bold /GameChanger * Bold /Creative Destruction * Bold /“Cool” Supplier Portfolio * Bold /Web Fanaticism

196. 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.

197. What makes God laugh?

198. People making plans!

199. do things.

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

201. drill.

202. “ 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

203. try things.

204. “ 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

205. “ Experiment fearlessly” Source: BW 0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

206. Screw. things. Up.

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

208. “ If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg ( BW /0625.07)

209. “ In business, you reward people for taking risks . When it doesn’t work out you p romote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg ( BW /0625.07)

210. Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation

211. try. Miss. try.

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

213. Life 101: A 40-year Reflection Go on offense. Give everybody a shot. Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a “success.” Extract “lessons learned” or “best practices.” Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs today’s franchise. Centralize. Calcify. Install taller walls. Write more rules. Become irrelevant and-or die.

214. No try. No deal.

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

216. 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”

217. Innovation: Get mad . Start Doing something about it. Now .

218. Focus.

219. “ We will not , I repeat not , pretend to be ‘all things to all people.’” —CEO, Investec (03.06)

220. The “New German Miracle”* = The “Old German Miracle” = Mittlestand** *Among other things, #1 in exports **”No doubt of it, tom [BASF exec/04.07]

221. #1/Quality = More procedures [Main Line Lankenau] Source: “In Health Care, Cost Isn’t Proof of High Quality,” NYT , 0614.07 (PA data, 60 hospitals, bypass surgery)

222. The “New German Miracle”* = The “Old German Miracle” = Mittlestand** *Among other things, #1 in exports **”No doubt of it, tom [BASF exec/04.07]

223. Conscious measurement

224. Innovation Index : How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird” / “Profound” / “Wow” / “Game- changer” Scale?

225. personal

226. Step #1: Buy a Mirror!

227. “ How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be. The p roblem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders

228. “ CHANGE MANAGEMENT.”

229. Tom’s “Change Rules” Cause. (pissed off.) Try it. (S.A.V.) Fail. Forward. Fast. Quests. Demos. Heroes. Stories. Boonies. (Parallel universe.) <12. Just Say No: Normal. Attitude>Ability. Wow. “Insanely great.” Sell! Sell! Sell! Master politics!

230. Tom’s “Change Rules” Cause. (ANGRY!.) RELENTLESS!!!!!!!!!!!!!!!!!!!!!!!!!!!! Try it . (S.A.V.) (r.f.a.) (hustle.) project. Project. Project. POLITICS! (“Soft stuff”) Wow! (hot language.) fun. (growth opportunities.) Sky-high aspirations. Fail. Forward. Fast. “SMALL WINS.” MOMENTUM. INEVITABILITY. Quests. Demos. Heroes. Stories. STATISTICAL INDEPENDENCE. (DIVERSITY.) Boonies. (Parallel universe. Test stuff. Buy WeeCo) V.C.: Roster = portfolio. everything = portfolio. Roster = brand yous. PARTNER WITH WIERDOS. (everywhere.) Diversity @ top. Buy a mirror. FRUSTRATED “GODFATHER.” <12. ALREADY IN PLACE/find ’em. JUST Say No: NORMAL. wikiWorld. Attitude > Ability. Wow. “Insanely great.” Sell! Sell! Sell! (master-appreciate politics) (r.o.i.r.)

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

232. EXCELLENCE. 4/40.

233. 4/40 (Decentralization/Execution/Accountability/6:15A.M.)

234. DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6 :15A.M.

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

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

237. No problems = No progress. [Period.]

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

239. Decentralization vs Centralization = “That’s All There Is” (from childrearing 101 to the Federalist Papers to Org.2007)

240. Ex-e- cu-tion!

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

242. “ 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

243. (1) sum of Projects = Goal (“Vision”) (2) sum of Milestones = project (3) rapid Review + Truth-telling = accountability

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

245. “ 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)

246. CF: 30% (no salesfolk) MH: 80% (salesfolk)

247. 6:15A.M.

248. “ But it’s only 2am!”

249. “ Where are you going? … But it’s only 2am. … You see, you can live your life at 120 miles an hour, and that’s pretty impressive. But it’s not good enough. Unless you live at 150 miles an hour, the world will pass you by,” HRH Prince Alwaleed* *1 day: 573 people met separately, 200 phone calls, 100 text messages, etc Source: “Prince Alwaleed, Inside the private world of the Middle East’s most powerful investor” cover story, The Business , 0519.07

250. DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 2a.m.

251. Excellence: The SE22 : ORIGINS OF SUSTAINABLE ENTREPRENEURSHIP

252. SE22/Origins of Sustainable Entrepreneurship 1. Genetically disposed to Innovations that upset apple carts (3M, Apple, FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun, Fox, Stanford University, MIT) 2. Perpetually determined to outdo oneself, even to the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx) 3. Treat History as the Enemy (GE) 4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony) 5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco, GSK, GE, Microsoft) 6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft) 7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple, Microsoft, CitiGroup, PepsiCo) 8. “ Culturally” as well as organizationally Decentralized (GE, J&J, Omnicom) 9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)

253. SE22/Origins of Sustainable Entrepreneurship 10. Keep decentralizing—tireless in pursuit of wiping out Centralizing Tendencies (J&J, Virgin) 11. Scour the world for Ingenious Alliance Partners— especially exciting start-ups (Pfizer) 12. Acquire for Innovation, not Market Share (Cisco, GE) 13. Don’t overdo “pursuit of synergy” (GE, J&J, Time Warner) 14. Execution/Action Bias: Just do it … don’t obsess on how it “fits the business model.” (3M, J & J) 15. Find and Encourage and Promote Strong-willed/ Hyper-smart/Independent people (GE, PepsiCo, Microsoft) 16. Support Internal Entrepreneurs (3M, Microsoft) 17. Ferret out Talent anywhere/“No limits” approach to retaining top talent (Virgin, GE, PepsiCo )

254. SE22/Origins of Sustainable Entrepreneurship 18. Unmistakable Results & Accountability focus from the get-go to the grave (GE, New York Yankees, PepsiCo) 19. Up or Out (GE, McKinsey, big consultancies and law firms and ad agencies and movie studios in general) 20. Competitive to a fault! (GE, New York Yankees, News Corp/Fox, PepsiCo) 21. “Bi-polar” Top Team, with “Unglued” Innovator #1, powerful Control Freak #2 (Oracle, Virgin) (Watch out when #2 is missing: Enron) 22. Masters of Loose-Tight/Hard-nosed about a very few Core Values, Open-minded about everything else (Virgin)

255. EX CELLE ALW AYS . End. PART TWO .