Tom Peters RE-IMAGINE EXCELLENCE INNOVATE NOW OR PERISH

Tom Peters’ RE-IMAGINE. EXCELLENCE. INNOVATE. NOW. OR PERISH. 2014 PAI Market Partner Conference 05 December/Punta Cana (slides at tompeters. com; also see excellencenow. com)

Meet Your Next Surgeon: Dr. Robot

“Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci /multiple bypass heart-surgery robot (“Almost all health care people get is going to be done by algorithms within a decade or two. ” —Michael Vassar/Meta. Med)

“The combination of new market rules and new technology was turning the stock market into, in effect, a war of robots. ” —Michael Lewis, “Goldman’s Geek Tragedy, ” Vanity Fair, 09. 13

“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 [c. f. , AF 447!]. ” —Nicholas Carr, The Atlantic, 11. 13

Let’s Welcome Our Newest [Official] “Just like other members of the board, the Board Member: algorithm gets to vote on whether the firm makes an investment in a specific company or not. [VITAL] The program is the sixth member of DKV's board. ” —Business Insider, 13 May 2014: “A Hong Kong VC fund has just appointed an algorithm to its board. ”

“The next frontier is a wireless technology called v 2 x , which companies in America, Europe and Japan are developing. It encapsulates vehicle-to- vehicle and vehicle-to-infrastructure communications. Special modems allow v 2 x-equipped cars to talk to each other and to the world around them. ” —Mary Barra, CEO, GM, in the Economist, December 2014

“Proteus Digital Health SENSOR PILLS: 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 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. into a safely digested pill that is swallowed. “This is a bigger deal than it may seem. In 2012, it was estimated that people not $258 billion in emergency room visits, hospitalization, and doctor visits. An average of 130, 000 Americans die taking their prescribed medications cost 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

Walmart SV = 1, 500

“What’s really interesting is NEXT FIVE YEARS that over the we’re going to see every industry exposed to reinvention of how people put products and services together, how work is done, what kind of jobs and skills are needed, what can be handled by technology. ” —John Sculley

“Software is eating the world. ” —Marc Andreessen

-1/+1/2

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

Enter the Mittelstanders: Middle-sized Niche/Micro-niche Dominators!

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

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

“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

Going “Social”: Location and 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 ‘We are the best teachers … in the world … on the fiberglass swimming pools. ’ Now we say, subject of fiberglass swimming pools, and we also happen to build them. ’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

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, the authors uncovered 344 companies that qualified as statistically “exceptional. ”)

Innovate or Perish/ Extreme Times DEMAND Extreme Solutions

“Insanely great” (Steve Jobs) “Radically thrilling” (BMW) “Astonish me!” “Build something great!” (Sergei Diaghilev, to a lead dancer) (Hiroshi Yamauchi, CEO, Nintendo, to a senior game designer) “Make it immortal!” (David Ogilvy, to a copywriter).

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe. ” — Jack Welch

1/48

1/48/1966 -2014 WTTMSW

WHOEVER TRIES THE MOST STUFF WINS

In Search of Excellence: Bedrock “Eight Basics” A Bias for Action 1. 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

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

“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

“EXPERIMENT FEARLESSLY” —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

“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation. ” —Michael Schrage, Serious Play

FAIL. FORWARD. FAST.

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

“REWARD excellent failures. PUNISH mediocre successes. ” —Phil Daniels, Sydney exec

“In business, you REWARD people for WHEN IT DOESN’T WORK OUT YOU PROMOTE THEM taking RISKS. 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

WTTMSASTMSUW

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

Tempo/ Temperament

“If things seem under control, you’re just not going fast enough. ” —Mario Andretti, race driver “I’m not comfortable unless I’m uncomfortable. ” —Jay Chiat “If it works, it’s obsolete. ” —Marshall Mc. Luhan

“At the heart of Boyd’s thinking is an idea labeled ‘OODA Loops. ’ OODA In short, the player with the quickest OODA Loops disorients the enemy to an extreme degree. stands for the Observe-Orient-Decide-Act cycle. In the world of aerial combat, for example, the confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator), Soviet Mi. Gs flown by Chinese pilots were faster and could climb higher, but our F-86 had “faster transients”—it could change direction more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10: 1 kill ratio. ” —Robert Coram, BOYD: The Fighter Pilot Who Changed the Art of War

WTTMSASTMSUTFW

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

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

“Ideas Economy: CAN YOUR BUSINESS FAIL FAST ENOUGH TO SUCCEED? ” Source: ad for Economist Conference/0328. 13/Berkeley CA (caps are Economist)

Value Added I: ADDING A STRATEGIC SERVICES COMPONENT

“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

M IB to

PS U to

Value Added II: DESIGN PRIMACY

Design #1 APPLE market capitalization > Exxon Mobil* *August 2011

Hypothesis: Men CANNOT design for women’s !!? ? needs

Value Added III: Women BUY ! [Everything]

“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, 09. 09

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

“The MOST SIGNIFICANT VARIABLE in EVERY sales situation is the GENDER of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender. ” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer Jill and Jack buy slacks in black…

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

Value Added IV: EXPERIENCE DESIGN & THE “AGE OF TGRs”* *Things Gone RIGHT

Conveyance: Kingfisher Air Location: Approach to New Delhi

“May I clean your glasses, sir? ”

“Experiences are as distinct from services as services are from goods. ” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“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)

Value Added V: LBTs* *Little BIG Things

Big carts = 1. 5 X Source: Walmart

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

“Flash When I work with experimental digital gadgets, I am always reminded of how small changes in the details of a digital design can have profound unforeseen effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as the ease of use of a button can sometimes alter behavior patterns. For instance, Stanford University researcher Jeremy Bailinson has changing the height of one’s avatars in immersive virtual reality transforms self-esteem and social self-perception. demonstrated that … Technologies are extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities can be shifted by the quirks of gadgets. It is impossible to work with information technology without also engaging in social engineering. ” —Jaron Lanier, You Are Not a Gadget

“You get a sense of the scale and intricacy of the task by considering the sound effects alone: The game contains 54, 000 pieces of audio and 40, 000 lines of There are 2, 700 different noises for footsteps alone depending on whose foot is stepping on what. ” dialogue. —Sam Leith on Halo 3, from Jane Mc. Gonigal, Reality Is Broken: Why Games Make Us Better and How They Can Change the World

BEDROCK: MATCHLESS TALENT

“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

"If you want staff to give great service, give great service to staff. " —Ari Weinzweig, Zingerman's

EXCELLENT customer experience depends … entirely … on EXCELLENT employee experience! If you want to WOW your FIRST customers, you must WOW those who WOW the customers!

“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, Michigan, 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,

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 good news: This is also the #1 mid- to long-term … profit maximization strategy! CORPORATE MANDATE #1 2014:

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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!