CONRAD HILTON …CONRAD HILTON …

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

““Amateurs talk Amateurs talk about strategy. about strategy.

Professionals talk Professionals talk about logistics.”about logistics.”

——Omar BradleyOmar Bradley

-1/+1/2-1/+1/2

THETHE RED RED CARPET CARPET STORESTORE

(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

*Basement Systems Inc. *Basement Systems Inc. (Larry Janesky/Seymour CT)(Larry Janesky/Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)*1990: $0; 2003: $13M; *1990: $0; 2003: $13M;

2010: 2010: $80,000,000$80,000,000

The Magicians of The Magicians of MotuekaMotueka (PLUS) (PLUS)!!

W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)

*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., e.g., U.S. NavyU.S. Navy STLVAST (Small To Large Vehicle At Sea STLVAST (Small To Large Vehicle At Sea

Transfer); custom fabric from Transfer); custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)

““BE THE BEST. BE THE BEST. IT’S THE ONLY IT’S THE ONLY

MARKET THAT’S MARKET THAT’S NOT CROWDED.”NOT CROWDED.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH::

““An adventure in An adventure in ‘shoppertainment,’‘shoppertainment,’ begins in the begins in the

parking lot and goes on to parking lot and goes on to 1,6001,600 cheeses and cheeses and

1,4001,400 varieties of hot sauce—not to mention 12,000 wines varieties of hot sauce—not to mention 12,000 wines

priced from priced from

$8-$$8-$8,0008,000 a bottle; all this is brought to you a bottle; all this is brought to you

by by 4,0004,000 vendors. Customers from every corner of the vendors. Customers from every corner of the

globe.”globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MIBRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP , POP

5,0005,000:: 98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000

Christmas ornaments, Christmas ornaments, 50,00050,000 trims, and anythingtrims, and anything else else

you can name pertaining to Christmas. …”you can name pertaining to Christmas. …”

Where the +201,000 new private-sectorWhere the +201,000 new private-sector jobs came from … jobs came from …

51% Small firms51% Small firms41% Medium-sized41% Medium-sized**8% Big8% BigSource: ADP National Employment Report/March 2011Source: ADP National Employment Report/March 2011

*E.g., German *E.g., German MITTELSTANDMITTELSTAND

Small (Small (EntrepreneurialEntrepreneurial) BUSINESS:) BUSINESS:

Training Inc.Training Inc. , a 14- , a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my … Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose “Department” Into A Professional Service Firm Whose

Trademarks Are Passion and Innovation.Trademarks Are Passion and Innovation.))

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!e-town Festivale-town Festival

Edmonton Economic DevelopmentEdmonton Economic DevelopmentEdmonton/12 September 2014Edmonton/12 September 2014

(For more see tompeters.com and our fully annotated 23-part Master (For more see tompeters.com and our fully annotated 23-part Master Compendium [Mother of All Presentations] at excellencenow.com)Compendium [Mother of All Presentations] at excellencenow.com)

People:People:1/4,0961/4,096

““Business has to Business has to give people give people enriching, enriching,

rewarding lives …rewarding lives …

1/4,096: excellencenow.com1/4,096: excellencenow.com

““Business has to give people enriching, Business has to give people enriching,

rewarding lives … rewarding lives … or it's or it's simsimppllyy not not

worth worth doindoing.”g.”

——Richard BransonRichard Branson

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in (SWA’s pilots union took out a full-page ad in USA USA TodayToday

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

““If you want staff to If you want staff to give great service, give great service, service, give great service, give great service to staff.” service to staff.”

——Ari Weinzweig, Zingerman’s Ari Weinzweig, Zingerman’s

Source: Source: Small Giants: Companies That Choose to Be Small Giants: Companies That Choose to Be Great Instead of Big, Great Instead of Big, Bo BurlinghamBo Burlingham

Wegmans Wegmans (was #1 in USA)(was #1 in USA)

Container Store Container Store (was #1 in USA)(was #1 in USA)

Whole FoodsWhole FoodsCostcoCostcoPublixPublix

Darden RestaurantsDarden RestaurantsBuild-A-Bear Build-A-Bear WorkshopsWorkshopsStarbucksStarbucks

Brand Brand = =

Talent.Talent.

Les Wexner:Les Wexner: FROM FROM FASHION TRENDS FASHION TRENDS GURU TO PICKING GURU TO PICKING AND DEVELOPING AND DEVELOPING

PEOPLE!*PEOPLE!**Limited Brands founder Les Wexner queried on astounding long-term success:*Limited Brands founder Les Wexner queried on astounding long-term success:

It happened because “I got as excited about developing people”It happened because “I got as excited about developing people” as he had been about predicting fashion trends in his early yearsas he had been about predicting fashion trends in his early years

((PARC’s Bob Taylor: “CONNOISSEUR OF TALENT”“CONNOISSEUR OF TALENT” ) )

““G-E-N-I-U-S”G-E-N-I-U-S”Getting more and more cantankerous (short tempered!)Getting more and more cantankerous (short tempered!)

about this:about this: Job #1Job #1 (& #2 & #3)(& #2 & #3) is to abet peoples' personal is to abet peoples' personal

growth. All other good things growth. All other good things flow there from.flow there from.My idea of a gen-u-ine “genius”My idea of a gen-u-ine “genius”

“ “breakthrough” idea:breakthrough” idea: If you work your If you work your heart out to help people grow, heart out to help people grow,

they'll work their hearts outthey'll work their hearts out to give customers a great to give customers a great

experience.experience.

““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is However— as ridiculous as it sounds—joy is

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

Training = Training = InvestmentInvestment

#1#1!!

6/2/36/2/3**

*It takes Jerry Seinfeld *It takes Jerry Seinfeld SIX SIX MONTHSMONTHS to develop to develop

TWO TWO oror THREE THREE MINUTESMINUTES of new material of new material (documentary: (documentary: ComedianComedian))

Is your Is your CTOCTO/Chief /Chief Training Officer your top Training Officer your top paid “C-level” job (other paid “C-level” job (other

than CEO/COO)?than CEO/COO)?If not, why not?

Are your training courses Are your training courses so good they make you so good they make you

giggle and tingle?giggle and tingle?If not, why not?

Gamblin’ ManGamblin’ Man

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

Bet #4:Bet #4: >> 8 of 10 >> 8 of 10 CEOs, in 45-min CEOs, in 45-min “tour d’horizon” “tour d’horizon” of their biz, would of their biz, would NOTNOT mention mention training.training.

What is the best reason to go What is the best reason to go bananas over training? bananas over training?

GREED.GREED. (It pays off.) (It pays off.)

(Training should be an official part of the (Training should be an official part of the

R&DR&D budget and a capital expense.) budget and a capital expense.)

11stst-Line Bosses -Line Bosses (Cadre of) = (Cadre of) =

Productivity Asset Productivity Asset

#1#1!!

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

WOMEN RULEWOMEN RULE!!(WOMEN BUY (WOMEN BUY [EVERYTHING][EVERYTHING]!!))

““Research suggests Research suggests that to succeed, start that to succeed, start

by promoting by promoting women.”women.”

““McKinsey & Company found that the international companiesMcKinsey & Company found that the international companies with more women on their corporate boards with more women on their corporate boards far outperformedfar outperformed the the

average company in return on equity and other measures. average company in return on equity and other measures.

Operating profit wasOperating profit was 56%56% higher.”higher.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

female managers outshine their male female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN..”*”*

Source: Headline, Economist

*W > 2X (C + I) = *W > 2X (C + I) = $28T$28T

Context:Context:1,000,0001,000,000

China/Foxconn:China/Foxconn:

1,000,001,000,0000 robots/next 3 robots/next 3

yearsyears

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

““Just like other members of Just like other members of the board, the board, the algorithm the algorithm

gets to vote on whether the gets to vote on whether the firm makes an investment firm makes an investment in a sin a sppecific comecific comppananyy or or

notnot. The program will be the . The program will be the sixth member of DKV's sixth member of DKV's

board.”board.”

Source:Source: Business Insider, Business Insider, 13 May 2014: 13 May 2014: “A Hong Kong VC fund “A Hong Kong VC fund has just appointed an algorithm to its board.” has just appointed an algorithm to its board.”

““The root of our problem is notThe root of our problem is not that we’re in a Great Recessionthat we’re in a Great Recession

or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early

throes of a throes of a Great Restructuring. .

Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations

are lagging behind.”are lagging behind.”

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

CORPORATE MANDATE #1/MORAL IMPERATIVE 2014:CORPORATE MANDATE #1/MORAL IMPERATIVE 2014:

Your principal moral obligation as Your principal moral obligation as a leader is to develop the a leader is to develop the

skillset, “soft” and “hard,” of skillset, “soft” and “hard,” of every one of the people in your every one of the people in your charge (temporary as well as charge (temporary as well as

semi-permanent) to the semi-permanent) to the maximum extent of your abilities. maximum extent of your abilities.

The good news: The good news: This is also theThis is also the #1 mid- to lon#1 mid- to longg-term-term … …

p profit maximization straterofit maximization strategy!gy!

LeadingLeading

25/525/500

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION

ARE …ARE … “WHAT “WHAT DO DO YOUYOU

THINK?” THINK?” **Source: courtesy Dave Wheeler, posted at tompeters.com Source: courtesy Dave Wheeler, posted at tompeters.com

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

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

18 …18 …

18 … 18 … secondsseconds!!

““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”

Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“RELENTLESS TRIAL“RELENTLESS TRIAL AND ERROR” AND ERROR” **

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

**WTTMSWWTTMSW/Whoever Tries The Most Stuff Wins/Whoever Tries The Most Stuff Wins

0/8000/800

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. AVOID MODERATIONAVOID MODERATION!!