LONG Tom Peters EXCELLENCE Foodservice Equipment Distributors

LONG Tom Peters’ ! EXCELLENCE Foodservice Equipment Distributors Association 31 March 2016/Tucson (Slides available at tompeters. com)

Conrad Hilton

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career? ” His answer …

“Remember to tuck the shower curtain inside the bathtub. ”

You get ’em in the door with “location, location”—and gorgeous appointments. You keep ’em coming back * with the tucked in shower curtain. *Profit rarely/never comes from transaction #1; it is a byproduct of transaction #2, #3, #4 …

IS “EXECUTION STRATEGY. ”* —Fred Malek *XX/e. Xecution e. Xcellence

“In real life, strategy is actually very straightforward. Pick a general direction … and implement like hell. ” —Jack Welch

“Amateurs talk about strategy. Professionals talk about logistics. ” —General Omar Bradley, commander of American troops/D-Day

+1/-1

S&P 500 +1/-1* *Every … ! 2 weeks Source: Richard Foster (via Rita Mc. Grath/HBR/12. 26. 13

“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

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait. ” myself? ’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Mr. Foster and his Mc. Kinsey colleagues collected detailed performance data stretching back years for 1, 000 found that U. S. companies. 40 They 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

“NOT A SINGLE COMPANY THAT QUALIFIED AS HAVING MADE A SUSTAINED TRANSFORMATION IGNITED ITS LEAP WITH A BIG ACQUISITION OR MERGER. Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it— often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness. ” —Jim Collins/Time

THE RED CARPET STORE (Joel Resnick/Flemington NJ)

*Basement Systems Inc. (Larry Janesky/Seymour CT) *Dry Basement Science (100, 000++ copies!) *1990: $0; 2003: $13 M; 2010: $80, 000

! The Magicians of Motueka (PLUS) W. A. Coppins Ltd. * (Coppins Sea Anchors/ PSA/para sea anchors) *Textiles, 1898; thrive on “wicked problems” U. S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); custom fabric from W. Wiggins Ltd. /Wellington (specialty nylon, “Dyneema, ” from DSM/Netherlands) —e. g. ,

THE DOCK DOCTORS Custom Products & Shoreline Solutions Every waterfront property is different, from the topography of the shoreline to exposure and water depths. Our custom products are designed and fabricated based on your specific property and recreational needs. Whether you are interested in a dock, stair system, hillside elevator, or boat lift, we will design, manufacture, and install a custom product to accommodate your desires for a perfect waterfront. We offer innovative solutions and the most diverse waterfront product line on the East Coast. Whether your project is unusual or traditional, our years of experience consulting, designing, and Commercial Division manufacturing commercial projects for a variety of entities such as municipalities, marina facilities, hydro plants, engineers, and land planners. Marinas, piers, stairs, shoreside platforms, and wetland pedestrian walkway piers, are only some of the examples of commercial projects that we specialize in.

Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: “An adventure in ‘shoppertainment, ’ 1, 600 1, 400 $8 -$8, 000 4, 000 begins in the parking lot and goes on to cheeses and varieties of hot sauce—not to mention 12, 000 wines priced from a bottle; all this is brought to you by vendors. Customers from every corner of the globe. ” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5, 000: 98, 000 -square-foot “shop” features ornaments, 50, 000 6, 000 Christmas trims, and anything else you can name pertaining to Christmas. …” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

“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

I love [that “L-word” again—what Middlesized Niche. Micro-niche Dominators!* can I say? ] … ! *"Own" a niche through EXCELLENCE/INNOVATION (Writ large: Germany’s MITTELSTAND/See below)

Hidden Champions* of the 21 st Century: Success Secrets of Unknown World Market Leaders/ Hermann Simon (*1, 2, or 3 in world market; <$4 B; low public awareness) Baader (Iceland/80% fishprocessing systems) Gallagher (NZ/electric fences) W. E. T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (specialty adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O. C. Tanner (employee recognition/$400 M) Hoeganaes (powder metallurgy supplies)

Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think*: 1. Better before cheaper. 2. Revenue before cost. 3. There are no other rules. (*From a database of over 25, 000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional. ”) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS. They get radically customer-centric. THEY KEEP DEVELOPING HUMAN CAPITAL.

The Future Is Small: Why AIM Will Be the World’s Best Market Beyond the Credit Boom —Gervais Williams, superstar fund manager (FT/1217. 14: “Research shows that new and small companies create almost all the new private sector jobs and are disproportionately innovative. ”)

“agile creatures darting between the legs of the multinational monsters” Source: Bloomberg Business. Week on the German MITTELSTAND

Tom Peters’ ! EXCELLENCE Foodservice Equipment Distributors Association 31 March 2016/Tucson (Slides available at tompeters. com)

The 3 -Minute Warning

“Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3 minutes . [Pilots] have become, it’s not much of an exaggeration to say, computer operators. ” Source: Nicholas Carr, “The Great Forgetting, ” The Atlantic, 11. 13

Alpha. Go Beats Go Grandmaster/March 2016 “This technology is going to cut through the global economy like a hot knife through butter. It learns fast and largely on its own. It's widely applicable. It doesn't only master what it has seen, it can innovate. For example: some of the unheard of moves made by Alpha. Go were considered ‘beautiful’ by the Grandmaster it beat. “Limited AGI/Artificial General Intelligence (deep learning in particular) will have the ability to do nearly any job currently being done by human beings—from lawyers to judges, nurses to doctors, driving to construction—potentially at a grandmaster's level of capability. This makes it a buzzsaw. “Very few people—and I mean very few—will be able to stay ahead of the limited AGI buzzsaw. It learns so quickly, the fate of people stranded in former factory towns gutted by ‘free trade’ is likely to be the fate of the highest paid technorati. They simply don't have the capacity to learn fast enough or be creative enough to stay ahead of it. ” —John Robb/Global Guerrillas 3/12/16

Io. T/Internet of Things Io. E/The Internet of Everything M 2 M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasive computing Industrial Internet Etc. * ** ***** *“More Than 50 BILLION connected devices by 2020” —Ericsson **Estimated 212 BILLION connected devices by 2020—IDC $14. 4 trillion **** “By 2025 Io. T could be applicable to $82 trillion of output ***Estimated Io. T market size, next decade: or approximately one half the global economy”—GE (GE is literally betting its existence and the future on the Io. T, Bloomberg Businessweek, 03. 2016) *****100, 000, 000 [100 trillion] sensors/2030 —Michael Patrick Lynch, The Internet of Us Primary source: “The Big Switch, ” Capital Insights

Sensor Pills: “Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safel y digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verif y if a patient has taken her or his medications. “This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 BILLION in emergency room visits, hospitalization, and doctor visits. An average of 130, 000 Americans die each year because they don’t follow their prescription regimens closely enough…” (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016. ) Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy

“Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci /multiple bypass heart-surgery robot

“[Michael Vassar/Meta. Med founder] is creating a better information ‘Almost all health care people get is going to be done—hopefully— by algorithms within a decade or two. system and new class of people to manage it. We used to rely on doctors to be experts, and we’ve crowded them into being something like factory workers, where their job is to see one patient every 8 to 11 minutes and implement a by-the-book solution. I’m talking about creating a new ‘expert profession’— medical quants, almost like hedgefund managers, who could do the high-level analytical work of directing all the information that flows into the world’s hard drives. Doctors would now be aided by Vassar’s new information experts who would be aided by advanced artificial intelligence. ”—New York /0624. 13

Persado (vs. copywriter): emotion words, product characteristics, “call to action, ” position of text, images Up To $250 To Spend On All Ships In All Destinations. 2 Days Left (1. 3%) vs. No kidding! You Qualify to Experience An Incredible Vacation With Us : -) (4. 1) “A creative person is good but random. We’ve taken the randomness out by building an ontology of language” —Lawrence Whittle, head of sales Source: Wall Street Journal/ 0825. 14/ “It’s Finally Time to Take AI Seriously”

“Algorithms have already written symphonies as Beethoven moving as those composed by , picked through legalese with the deftness of a law partner, diagnosed patients with more accuracy than a doctor, written senior news articles with the smooth hand of a reporter seasoned , and driven vehicles on urban highways with far better control than a human driver. ” Automate This: How Algorithms Came to Rule the World —Christopher Steiner,

“Software is eating the world. ” —Marc Andreessen

“Human level capability has not turned out to be a special stopping point from an engineering perspective. …. ” Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

“If you think being a ‘professional’ makes your job safe, think again. ” —Robert Reich

“Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's jobs will be eliminated by new computing and robotics technology over the next 20 years, say experts [Deloitte/Oxford University]. ” —Headline, Telegraph (UK), 11 November 2014 “I believe that 90 percent of whitecollar/‘knowledge-work’ jobs—which are 80 percent of all jobs—in the U. S. will be either destroyed or altered beyond recognition in the next 10 to 15 years. ” —Tom Peters, Cover, Time, 22 May 2000 “The machine plays no favorites between manual and white collar labor. ” —Norbert Wiener, 1958

The New Logic: Scale w/o Employment 145, 000 Kodak: 1988/ employees; 2012/bankrupt Instagram: 30, 000 customers/ 13 employees (Whats. App: 450, 000 customers/ 55 employees/ Valued @ $19, 000, 000) Source: Robert Reich’s Blog/0317. 15

“The median worker is losing the race against the machine. ” * —Erik Brynjolfsson and Andrew Mc. Afee, Race AGAINST the Machine *“Occupations intensive in tasks that can easily be computerized are usually in the middle class. ” (MIT’s David Autor)

China/Foxconn: 1, 000 robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew Mc. Afee

“Since 1996, manufacturing employment in China itself has actually fallen 25 percent 30, 000 by an estimated That’s over fewer . Chinese workers in that sector, even while output soared by 70 percent. It’s not that American workers are being replaced by Chinese workers. It’s that both American and Chinese workers are being made more efficient [replaced] by automation. ” —Erik Brynjolfsson and Andrew Mc. Afee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies

AI/Be Careful of What You Wish For Hawking* Gates** Musk Etc. * “The development of full artificial intelligence could spell the end of the human race. ” ** “I don’t understand why people are NOT concerned. ”

20/5

“It takes 20 years to build a reputation and 5 minutes to ruin it. Also, the Internet and Welcome to the Age of Social Media: technology have made customers more demanding. , and they expect information, answers, products, responses, and resolutions sooner than ASAP. ”

“What used to be “word of mouth” is now “word of mouse. ” You are either creating brand ambassadors or brand terrorists doing brand assassination. ” —John Di. Julius, The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World

“Customer engagement is moving from relatively isolated market transactions to deeply connected and sustained social relationships. This basic change in how we do business will make an impact on just about everything we do. ” Social Business By Design: Transformative Social Media Strategies For the Connected Company —Dion Hinchcliffe & Peter Kim

“The customer is in complete control of communication. ” Welcome to the Age of Social Media: —John Di. Julius, The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World

“We’re moving toward an age of nearly perfect information. Review sites, shopping apps on smartphones, an extended network of acquaintances available through social media, and unprecedented access to experts mean that consumers operate in a radically different, socially interactive information environment. * … Consumers tend to make better decisions and become less susceptible to context or framing manipulations. For businesses, it means marketing is changing forever. ” —Itamar Simonson and Emanuel Rosen, Value: Absolute What Really Influences Customers in the Age of (Nearly) Perfect Information *Google: ZMOT/84 (ZERO Moment Of Truth)

“I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial. Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard. “[I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the brand. ” —Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social: How Companies Must Adapt to Survive, by Ted Coine & Mark Babbit)

Going “Social”: Location/Size Independent “Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools. ’ Now we say, ‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them. ’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

“Caesars’ Entertainment have bet their future on harvesting personal data rather than developing the fanciest properties. ” —Adam Tanner, What Stays in Vegas: The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know it

Biz 2016: Get Aboard the “S-Train” SM/Social Media. SX/Social e. Xecutives. SE/Social Employees. SO/Social Organization. SB/Social Business.

PS U to

“Rolls-Royce now earns MORE from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them. ” —Economist

PS U to

“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

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ” —ecompany. com

UPS = United Problem Solvers

“THE GIANT STALKING BIG OIL: Schlumberger How 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: Business. Week

“We’ll do just about anything an oilfield owner would want, from drilling to production. ” IPM’s Chief:

I. LAN Installation Co. II. Geek Squad. (3% local market share) (30% local market share with name change. ) III. Acquired by Best Buy. IV. FLAGSHIP OF BEST BUY’s WHOLESALE “SOLUTIONS” STRATEGY MAKEOVER.

Going “Social”: Location/Size Independent “Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools. ’ Now we say, ‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them. ’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close the sale”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘BUSINESS ADVANTAGE’” (“Culture-Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

Big Idea: “Corporation” MEGA“PSF”* as *I. e. , a de facto collection of professional service firms aligned—and integrated—to create value for customers and their ecosystems.

…………. . … TGR > TGW

Customers describing their service experience as “superior”: 8% Companies describing the service experience they provide as “superior”: 80% Bain & Company survey of 362 companies —Source: , reported in John Di. Julius, What's the Secret to Providing a World-class Customer Experience?

<TGW <TG and … >TGR [Things Gone WRONG-Things Gone RIGHT]

“May I clean your glasses, sir? ”

“May I help you down the jetway. ”

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

K=R=P

Kindness = Repeat Business = Profit.

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. [OPPORTUNITY]

Relationships (of all varieties): THERE ONCE THREE -MINUTE PHONE CALL WOULD HAVE AVOIDED WAS A TIME WHEN A SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. * *Divorce, loss of a BILLION $$$ aircraft sale, etc.

With a new and forthcoming policy on apologies … Toro, the lawn mower folks, reduced the average cost of settling a claim $115, 000 in 1991 to $35, 000 in 2008 … and the company hasn’t been to trial in the last 15 years! from

Get ’Em Away From the ATM and Into the Branches: 7 X. 7: 30 A-8: 00 P. Fri/12 A. 7: 30 AM = 7: 15 AM. 8: 00 PM = 8: 15 PM. (+2, 000 dog biscuits) Source: Vernon Hill, Fans, Not Customers (the story of Commerce Bank, the folks who revolutionized East Coast retail banking)

CARL’S STREETSWEEPER* *Flowers on the showroom floor/ courtesy Stanley Marcus

TGRS. MANAGE ’EM. MEASURE ’EM. * *I use “manage-measure” a lot. Translation: These are not “soft” ideas; they are exceedingly important things that can be managed—AND measured.

TGRs (on steroids): V )BTs L( ery

Bag sizes = New markets: $B Source: Pepsi. Co

Big carts = 1. 5 X Source: Walmart

Las Vegas Casino/2 X: slightly curved “When Friedman the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who one-third to nearly two-thirds. ” entered increased from —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

18 Seconds

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

18 …

18 … seconds!

*8 of 10 sales presentations fail 50% failed sales * talking “at” before listening! presentations … —Susan Scott, “Let Silence Do the Heavy Lifting, ” chapter title, Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a Time

(An obsession with) Listening is. . . the ultimate mark 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. ) 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 organization effectiveness. ) .

EXECUTION Listening is. . . the engine of superior. Listening is. . . the key to making the Sale. Listening is. . . the key to Keeping the Customer’s Business. Listening is. . . Service. Listening is. . . the engine of Network development. Listening is. . . the engine of Network maintenance. Listening is. . . the engine of Network expansion. Listening is. . . Social Networking’s “secret weapon. ” Listening is. . . Learning. Listening is. . . the sine qua non of Renewal. Listening is. . . the sine qua non of Creativity. Listening is. . . the sine qua non of Innovation. Listening is. . . the core of taking diverse opinions aboard. Listening is. . . Strategy. Listening is. . . Source #1 of “Value-added. ” Listening is. . . Differentiator #1. Listening is. . . Profitable. * (*The “R. O. I. ” from listening is higher than from any other single activity. ) Listening is … the bedrock which underpins a Commitment to EXCELLENCE

Suggested Core Value #1: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Profitability and Growth. ”

Apple > Exxon

Design RULES! APPLE market cap > Exxon Mobil* *10 August 2011 (0410. 15: $740 B, 2 X #2)

“Steve and Jony would discuss corners for hours and hours. ” —Laurene Powell Jobs

“Huge degree of care. ” Apple design: —Ian Parker, New Yorker, 23 March 2015, on Apple design chief Jony Ives

“Typically, design is a vertical stripe in the chain of events in a product’s delivery. [At Apple, it’s a] long, horizontal stripe, where design is part of every conversation. ” —Robert Brunner, former Apple design chief

DESIGN/TRUE DEFINITION/“A BIT OF YOUR HEART” “[A racing shell] is a work of art, an expression of the human spirit, with its unbounded hunger for the ideal, for beauty, for purity, for grace. A large part of Pocock’s genius as a boatbuilder was that he managed to excel both as a maker of machines and as an artist. ” “He said for him the craft of building a boat was like a religion. It wasn’t enough to master the technical details of it. You had to give yourself up to it spiritually; you had to surrender yourself absolutely to it. When you were done and walked away, you had to feel that you had left a piece of yourself behind in you forever, a bit of your heart. ” —On the world’s premier racing shell builder, George Yeoman Pocock (D. J. Brown, THE BOYS IN THE BOAT: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics )

W> 2 X (C + I)

“Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN. ” Source: Headline, Economist

W> 2 X (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

Women as Decision Makers/Various sources Home Furnishings … Vacations … 92% 94% (Adventure Travel … 70%/ $55 B travel equipment) 91% D. I. Y. … 80% Consumer Electronics … 51% Cars … 68% (influence 90%) Houses … (major “home projects”) (66% home computers) All consumer purchases … Bank Account … 83% * 89% 67% Small business loans/biz starts … 70% Health Care … 80% Household investment decisions … *In the USA women hold >50% managerial positions including >50% purchasing officer positions ; hence women also make the majority of commercial purchasing decisions.

Women [USA] as … 55% Purchasing managers: 42% Wholesale/retail buyers: 52% Purchasing agents: Employee health-benefit plans: 60% Source: Martha Barletta/Trend. Sight Group

Can you pass the … “Squint test” ?

“Research suggests that to succeed, start by promoting women. ” [by Mc. Kinsey & Co. ] —Nicholas Kristof, “Twitter, Women, and Power, ” NYTimes “In my experience, women make much better executives than men. ” —Kip Tindell, CEO, Container Store

“Women are rated higher in fully 12 of the 16 competencies that go into outstanding leadership. And two of the traits where women outscored men to the highest degree — taking initiative and driving for results — have long been thought of as particularly male strengths. ” —Harvard Business Review/2014

For One [BIG] Thing … “Mc. Kinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was … 56% higher. ” Source: Nicholas Kristof, “Twitter, Women, and Power, ” NYTimes, 1024. 13

Portrait of a Female Investor 1. Trade less than men do 2. Exhibit less overconfidence—more likely to know what they don’t know 3. Shun risk more than male investors do 4. Less optimistic, more realistic than their male counterparts 5. Put in more time and effort researching possible investments—consider details and alternate points of view 6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching 7. Learn from their mistakes 8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles Warren Buffett Invests Like a Girl: And Why You Should Too, Louann Lofton, Chapter 2, “The Science Behind the Girl” Source:

50: Lesson WTTMSW

WHOEVER TRIES THE MOST STUFF WINS

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

“EXPERIMENT FEARLESSLY” Source: Business. Week, “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

“FAIL. FORWARD. FAST. ” —High Tech CEO, Pennsylvania “FAIL FASTER. SUCCEED SOONER. ” —David Kelley/IDEO “MOVE FAST. BREAK THINGS. ” —Facebook

“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

#2/4, 096: “YOU MISS 100% OF THE SHOTS YOU NEVER TAKE. ” —Wayne Gretzky

WTTMSASTMSUTFW

WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP THE FASTEST WINS

He who has the quickest “O. O. D. A. Loops”* wins! *Observe. Orient. Decide. Act. /Col. John Boyd

We Are What We Eat. We Are Who We Hang Out With.

Diversity: “IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES OF PROGRESS. ” —John Stuart Mill

“You will become like the five people you associate with the most—this can be either a blessing or a curse. ” —Billy Cox

The “We are what we eat”/ “We are who we hang out with” every !!! Axiom: At its core, ( ) relationship-partnership decision (employee, vendor, customer, etc. , strategic etc. ) is a decision about: “Innovate, ‘Yes’ or ‘No’ ”

Cx. Q /Connectional Intelligence: “Connectional Intelligence is the ability to combine the world’s diversity of people, networks, disciplines and resources, forging connections that create value, meaning, and breakthrough results. ” Source: Erica Dhawan and Saj-Nicole Joni, Get BIG Things Done: The Power of Connectional Intelligence* (*Superb book!)

Ijad Madisch/ Research. Gate 5. 5 M members/ 10 K newbies join per day Source: Time, 1114. 14/On a web-based collective of every flavor of researcher

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

“The Bottleneck is at the … “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 … Top of the Bottle” — Gary Hamel/Harvard Business Review

WE ARE THE COMPANY WE KEEP! MANAGE IT!

“PEOPLE BEFORE STRATEGY”

“PEOPLE BEFORE STRATEGY” —Lead article, Harvard Business Review. July-August 2015, by Ram Charan, Dominic Barton, and Dennis Carey

“Business has to give people enriching, rewarding lives …

1/4, 096: excellencenow. com “Business has to give people enriching, or it's simply not worth doing. ” rewarding lives … —Richard Branson

“You have to treat your employees like customers. ” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer, ” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting)

“What employees experience, Customers will. The best marketing is YOUR CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR EMPLOYEES. ” happy, engaged employees. —John Di. Julius, The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World

"When I hire someone, that's when I go to work for them. ” —John Di. Julius, "What's the Secret to Providing a World-class Customer Experience"

1996 -2014/Twelve companies have been among the “ 100 best to work for” in the USA every year, for all 16 years of the list’s existence; along the way, they’ve added/ 341, 567 new jobs, or job growth of +172%: Publix Whole Foods Wegmans Nordstrom Cisco Systems Marriott REI Goldman Sachs Four Seasons SAS Institute W. L. Gore TDIndustries Source: Fortune/ “The 100 Best Companies to Work For”/0315. 15

“Exec’s former CEO, Justin Kan, says the company acquired a ‘false sense that the quality of service for our customers was better than it was’ because the quality of the ‘average recruitable errand runner’—at the low pay and on-call demands that Exec wanted—did not result in hiring the self-motivated personality types like those that start Silicon Valley companies. That in turn led to too many negative experiences for too many customers. … “Kan, like so many of the wide-eyed visionaries of Silicon Valley, had completely underestimated the human factor. To so many of these hyperactive venture entrepreneurs, workers are just another ore to be fed into their machine. They forget that the quality of the ore is crucial to their success, and that quality was dependent on how well the workers were treated and rewarded. The low pay and uncertain nature of the work keeps the employees wondering if there isn’t a better deal somewhere else. … “The current startup model destroys the social connection between businesses and those they employ, and these companies have failed to thrive because they provide crummy jobs that most people only want to do as a very last resort. These platforms show their workforce no allegiance or loyalty, and they engender none in return. …” —Steven Hill, Salon, 0327. 16, “Good Riddance, Gig Economy: Uber, Ayn Rand the awesome collapse of Silicon Valley’s dream of destroying your job”

“Shyp, a company that picks up, packages, and ships items for its users, made a similar transition to hiring employees for some roles in July. In a blogpost, Shyp CEO Kevin Gibbon explained that the change was "an investment in a longer-term relationship with our couriers, which we believe will ultimately create the best experience for our customers. " –Sarah Kessler, Fast Company, 0329. 16, “Why A New Generation Of On-Demand Businesses Rejected The Uber Model” (“The idea that an ‘Uber for X’ model could fit any service proved arrogant, especially for customer -service focused startups. ”)

Training = Investment 6. 6 1! #

In the Army, 3 -star generals worry about training. In most businesses, it's a “hohum” mid-level staff function.

Is your CTO/Chief Training Officer (Do you even have a CTO? ) your top paid “C-level” job (other than CEO/COO)? Are your top trainers paid/cherished as much as your top marketers/ engineers?

Gamblin’ Man >> 5 of 10 CEOs see training as expense rather than investment. Bet #2: >> 5 of 10 CEOs see training as defense rather than offense. Bet #3: >> 5 of 10 CEOs see training as “necessary evil” rather than “strategic opportunity. ” Bet #1:

>> 8 of 10 CEOs, in 45 -min “tour d’horizon” of their biz, would NOT mention training. Bet #4:

#1 What is the reason to go berserk over training?

What is the best reason to go bananas over training? GREED. (It pays off. ) (Also: Training should be an official part of the R&D budget and a capital expense. )

Promotion Decisions “life and death decisions” Source: Peter Drucker, The Practice of Management

“Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader. ” —Edie Seashore

“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 problem is an acute lack of feedback [especially on people issues]. ” —Daniel Goleman (et al. ), The New Leaders

If the regimental commander lost most of his 2 nd lieutenants and 1 st lieutenants and captains and If he lost his sergeants it would be a catastrophe. The Army and the majors, it would be a tragedy. Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness?

“In great armies, the job of generals is to back up their sergeants. ” —COL Tom Wilhelm, from Robert Kaplan, “The Man Who Would Be Khan, ” The Atlantic

“People leave managers not companies. ” —Dave Wheeler

Your principal moral obligation as a leader is to develop the skillset, “soft” and “hard, ” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities. The bonus: This is also the #1 mid- to long-term … profit maximization strategy! CORPORATE MANDATE #1 2015:

In Good Business, Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, per Csikszentmihalyi, has the RESPONSIBILITY to increase the … “SUM OF HUMAN WELLBEING. ” Business is NOT “part of the community. ” In terms of how adults collectively IS spend their waking hours: Business the community. And should act accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way? ) to have spirited/committed/customer-centric work force— and, ultimately, increase (maximize? ) growth and profitability.

“It may sound radical, unconventional, and bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team. ” Joy, Inc. : How We Built a Workplace People Love —Richard Sheridan,

MBWA

“A desk is a dangerous place from which to view the world. ” —John Le Carré

MBWA (Managing By Wandering Around)

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“I’m always stopping by our at least a week. stores— 25 I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up as much as I can. ” —Howard Schultz Source: Fortune, “Secrets of Greatness”

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“Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is to cultivate the Let me put it bluntly: every leader should routinely keep a substantial portion of his or her time—I would say as much as perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters. 50 percent—unscheduled. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free time is, ‘That’s all Yet we waste so much time in unproductive activity—it takes an enormous effort on the part of the leader to keep free time for the truly important things. ” well and good, but there are things I have to do. ’ —Dov Frohman (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught— And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

“IT’S ALWAYS SHOWTIME. ” —David D’Alessandro, Career Warfare

“Nothing is so contagious as enthusiasm. ” —Samuel Taylor Coleridge “I am a dispenser of enthusiasm. ” —Ben Zander, symphony conductor and management guru

You = Your calendar* *The calendar NEVER lies.

YOUR CALENDAR KNOWS PRECISELY WHAT YOU REALLY CARE ABOUT. DO YOU? ?

“If there is any ONE ‘secret’ to effectiveness, it is concentration. Effective executives do first things first … and they do ONE thing at a time. ” —Peter Drucker

“If I had to pick one failing of they don’t read enough. ” CEOs, it’s that …

“The deepest principle in human nature is the craving* to be appreciated. ” —William James *“‘Craving, ’ not ‘wish’ or ‘desire’ or ‘longing, ’” per Dale Carnegie, How to Win Friends and Influence People (chapter, “The BIG Secret of Dealing With People”)

"Appreciative words are the most powerful force for good on earth. ” —George W. Crane, physician, columnist “The two most powerful things in existence: a kind word and a thoughtful gesture. ” —Ken Langone, co-founder, Home Depot

“Acknowledge” … perhaps the most powerful word (and idea) in the English language—and in the manager’s tool kit!

“Employees who don't feel significant rarely make significant contributions. ” —Mark Sanborn

“The 4 most important words in any organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION “WHAT DO YOU THINK? ” ARE … Source: courtesy Dave Wheeler, posted at tompeters. com

“THANK YOU”

CEO Doug Conant 30, 000 handwritten ‘Thank sent you’ notes to employees during the 10 years he ran Campbell Soup. [approx 10/day] Source: Bloomberg Business. Week

Complain all you want, but meetings are what you [boss/leader] do!

Meeting: Every meeting that does not stir the imagination and curiosity of attendees and increase bonding and co-operation and engagement and sense of worth and motivate rapid action and enhance enthusiasm is a permanently lost opportunity.

Meetings = #1 leadership opportunity* ** [*pure THEATER] [**prep prep!]

! EXCELLENCE

In Search of Excellence/1982: 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

Action People Customers Values

In Search of Excellence “twitter-ized”/ Cherish your people. Cuddle your customers. Wander around. “Try it” beats “talk about it. ” Pursue Excellence. Tell the truth. <140 Characters: 125 characters (with spaces)/Q. E. D.

Why in the World did you go to Siberia?

An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum ENTERPRISE* (*AT ITS BEST): concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others. ** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

“What matters most to a company over time? Strategy or culture? WSJ/0910. 13: Dominic Barton, Managing Director, Mc. Kinsey & Co. : “Culture. ”

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people Yet I came to see in my time at IBM that culture isn’t just one aspect of the is very, very hard. game —IT IS THE GAME. ” —Lou Gerstner, Who Says Elephants Can’t Dance

“Culture precedes positive results. It doesn’t get tacked on as an afterthought on the way to the victory stand. ” —NFL Hall of Fame Coach Bill Walsh .

“Culture eats strategy for breakfast. ” —Ed Schein/1986

EXCELLENCE is not not a “long-term” "aspiration. ”

EXCELLENCE is not a “long-term” "aspiration. ” EXCELLENCE is the ultimate shortterm strategy. EXCELLENCE is … THE NEXT 5 MINUTES. * (*Or NOT. )

EXCELLENCE is not an "aspiration. " EXCELLENCE is … THE NEXT FIVE MINUTES. EXCELLENCE is your next conversation. Or not. EXCELLENCE is your next meeting. Or not. EXCELLENCE is shutting up and listening—really listening. Or not. EXCELLENCE is your next customer contact. Or not. EXCELLENCE is saying “Thank you” for something “small. ” Or not. EXCELLENCE is the next time you shoulder responsibility and apologize. Or not. EXCELLENCE is waaay over-reacting to a screw-up. Or not. EXCELLENCE is the flowers you brought to work today. Or not. EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule. Or not. EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think. Or not. EXCELLENCE is waaay “over”-preparing for a 3 -minute presentation. Or not. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.

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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!

“INSANELY GREAT” STEVE JOBS “RADICALLY THRILLING” BMW “ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER “BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER “MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.