Tom Peters’Tom Peters’

EXCELLENCEEXCELLENCE..BEDROCKBEDROCK..

THENTHEN.. NOW NOW.. TOMORROWTOMORROW..

World Strategy SummitWorld Strategy SummitSt. Regis Saadiyat Island ResortSt. Regis Saadiyat Island Resort

17 November 201517 November 2015

(Today’s slides and 10+ years of presentation slides at (Today’s slides and 10+ years of presentation slides at tompeters.comtompeters.com; ; also see our annotated 23-part Master Compendium at also see our annotated 23-part Master Compendium at excellencenow.comexcellencenow.com))

EXECUTIONEXECUTION

Conrad’s Conrad’s Commandment Commandment ……

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.”.”

People People

((REALLYREALLY)) FirstFirst

FIRST WOWFIRST WOW THE WOWERS THE WOWERS

EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …

onon EXCELLENT EXCELLENT employee experience!employee experience!

If you want to WOW your If you want to WOW your

customers, customers, FIRSTFIRST you you

must WOW those whomust WOW those who WOW the customers!WOW the customers!

““What employees experience, Customers will. The best marketing is What employees experience, Customers will. The best marketing is

happy, engaged employees.happy, engaged employees. YOUR YOUR CUSTOMERS CUSTOMERS

WILL NEVER BE WILL NEVER BE ANY HAPPIER ANY HAPPIER THAN YOUR THAN YOUR

EMPLOYEESEMPLOYEES.”.” —John DiJulius, —John DiJulius,

The Customer Service Revolution: Overthrow Conventional The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldBusiness, Inspire Employees, and Change the World

Rocket Science. Rocket Science. NOT.NOT.

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

to staff.” 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

THE THE MORAL MORAL IMPERATIVEIMPERATIVE::

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

“Human level capability has not turned out to be a special stopping point from

an engineering perspective.”

—Illah Reza Nourbakhsh, Robot Futures/2013

“SOFTWARE IS EATING THE WORLD.” —Marc Andreessen/2014

“The intellectual talents of highly trained professionals are no more

protected from automation than is the driver’s left turn.”

—Nicholas Carr, The Glass Cage: Automation and Us

“If you think being a ‘professional’ makes

your job safe, think again.” —Robert Reich

CORPORATE MANDATE #1 2015:CORPORATE MANDATE #1 2015: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum extent of your abilities. The extent of your abilities. The

bonus: bonus: This is also theThis is also the #1 mid- to lon#1 mid- to longg-term-term … …

p profit maximization straterofit maximization strategy!gy!

““Business has Business has to give people to give people

enriching, enriching, rewarding lives …rewarding lives …

1/4,0961/4,096: excellencenow.com: 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

TRAININGTRAINING = = InvestmentInvestment

#1#1!!

In the Army, In the Army, 33--star star ggeneralsenerals worry worry

about training. In most about training. In most businesses, it's a businesses, it's a

““ho-hum” mid-level ho-hum” mid-level staff function.staff function.

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)?

Are your top trainers Are your top trainers paid/cherished as much paid/cherished as much as your top marketers/ as your top marketers/

engineers?engineers?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training Are your training courses so good courses so good they make you … they make you … JUMPJUMP FORFOR JOYJOY??If not, why not?If not, why not?Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months?12 months?If not, why not?If not, why not?Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

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 What is the

#1#1 reason to reason to

go berserk over go berserk over 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.)

(Also: Training should be an official part of(Also: Training should be an official part of

the 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!!

If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

Employee retention Employee retention && satisfaction satisfaction && productivity: productivity: OverwhelminOverwhelminggllyy

based on the based on the

first-line first-line manamanagger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All the First, Break All the Rules: What the World’s Greatest Managers Do DifferentlyRules: What the World’s Greatest Managers Do Differently

WHYWHY NOTNOT??**********

““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

INNOVATION INNOVATION ENGINEENGINE

INNOVATION INNOVATION OBSESSION:OBSESSION:BUILDING A BUILDING A

LEARNING LABLEARNING LAB

LessonLesson4949::

WTTMSWWTTMSW

WWHOEVERHOEVER

TTRIESRIES

TTHEHE

MMOSTOST

SSTUFFTUFF

WWINSINS

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals are ready By the time our rivals are ready

with wires and screws, we are on version with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

““FAIL. FORWARD. FAIL. FORWARD. FAST.”FAST.”

—High Tech CEO, Pennsylvania

“FAIL FASTER. SUCCEED “FAIL FASTER. SUCCEED SOONER.”SOONER.”

—David Kelley/IDEO

“MOVE FAST. “MOVE FAST.

BREAK THINGS.”BREAK THINGS.” —Facebook—Facebook

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

Source: Source: BusinessWeekBusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”, “Type A Organization Strategies: How to Hit a Moving Target”

——TACTIC TACTIC #1#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 portfolios in the face of changing and uncertain global economic conditions

CULTURAL CULTURAL CONVERSION:CONVERSION:

ORGANIZATIONORGANIZATION ASAS VIBRANTVIBRANT

LEARNINGLEARNING LABLAB

““You can’t be a serious You can’t be a serious innovator unless and untilinnovator unless and until you are ready, willing and you are ready, willing and

able to seriously play.able to seriously play.

‘‘SERIOUS SERIOUS PLAYPLAY’’ is not an is not an

oxymoron; oxymoron; it is the essence of it is the essence of innovationinnovation.”.” —Michael Schrage,—Michael Schrage, Serious Serious

PlayPlay

WTTMSWTTMSASTMSUASTMSUTFTFWW

We Are WhatWe Are What We Eat. We Eat.

We Are Who We We Are Who We Hang Out With.Hang Out With.

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy ( (!!!!!!) ) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc., (employee, vendor, customer, etc.,

etc.) is a etc.) is a stratestrateggicic

decision about:decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

The Future The Future Is SmallIs Small

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,000 U.S. companies.U.S. companies. TheTheyy found that found that

NONE ofof

the lonthe longg-term survivors mana-term survivors managged ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, the worse theyy did did.” .” —Financial Times—Financial Times

The Future The Future Is SmallIs Small

——book, by Gervais Williams, superstar fund manager, book, by Gervais Williams, superstar fund manager,

FT/1217.14:FT/1217.14: ““Research shows that new and Research shows that new and small comsmall comppanies create almost all the anies create almost all the

new new pprivate sector rivate sector jjobs and are obs and are disdispproropportionatelortionatelyy innovative innovative.”.”

THETHE RED RED CARPET CARPET STORESTORE

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

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)

My “love affair” … My “love affair” … Middle-Middle-sized Niche- sized Niche-

or Micro-niche or Micro-niche Dominators!Dominators!**

*"Own" a niche through EXCELLENCE/INNOVATION*"Own" a niche through EXCELLENCE/INNOVATION!!((Writ large: Germany’s Writ large: Germany’s MITTELSTANDMITTELSTAND —“agile —“agile

creatures darting between the legs of the multinational creatures darting between the legs of the multinational monsters”monsters” ) )

Hidden Champions* of the 21Hidden Champions* of the 21stst Century: Century: Success Secrets of Unknown World Market Success Secrets of Unknown World Market

LeadersLeaders//Hermann Simon Hermann Simon (*1, 2, or 3 in world market; <$4B; low public awareness)(*1, 2, or 3 in world market; <$4B; low public awareness)

Baader (Iceland/80% fish-Baader (Iceland/80% fish-processing systems)processing systems)

Gallagher (NZ/electric Gallagher (NZ/electric fences)fences)

W.E.T. (heated car seat W.E.T. (heated car seat tech)tech)

Gerriers (theater curtains Gerriers (theater curtains and stage equipment)and stage equipment)

Electro-Nite (sensors for Electro-Nite (sensors for the steel industry)the steel industry)

Essel Propack (India/tooth Essel Propack (India/tooth paste tubes)paste tubes)

SGS (product auditing and SGS (product auditing and certification)certification)

DELO (specialty adhesives)DELO (specialty adhesives)

Amorim (Portugal/cork Amorim (Portugal/cork products)products)

EOS (laser sintering)EOS (laser sintering)Beluga (heavy-lift Beluga (heavy-lift

shipping)shipping)Omicron (tunnel-grid Omicron (tunnel-grid

microscopy)microscopy)Universo (wristwatch Universo (wristwatch

hands)hands)Dickson Constant Dickson Constant

(technical textiles)(technical textiles)O.C. Tanner (employee O.C. Tanner (employee

recognition/$400M)recognition/$400M)Hoeganaes (powder Hoeganaes (powder

metallurgy supplies)metallurgy supplies)

LEADERSHIPLEADERSHIP

2525!!

MBWAMBWA((MManaging anaging BBy y WWandering andering AAround)round)

““I’m always stopping by our I’m always stopping by our

stores— stores— at least at least 2525

a weeka week.. I’m also in other I’m also in other

places: Home Depot, Whole Foods, places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to Crate & Barrel. I try to be a sponge to pick up as much as I can.”pick up as much as I can.” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

44

““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 Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

1818

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

(An (An obsessionobsession with) Listening is ... the ultimate mark with) Listening is ... the ultimate mark

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication.Communication.* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organization effectiveness.)organization effectiveness.)

Suggested Suggested Core Value Core Value #1:#1: “We are Effective Listeners“We are Effective Listeners—we treat Listening —we treat Listening EXCELLENCEEXCELLENCE

as the Centerpiece of our as the Centerpiece of our Commitment to Respect and Commitment to Respect and

Engagement and Community and Engagement and Community and Growth and Innovation and Growth and Innovation and

Profitability.”Profitability.”

*Listening is of the*Listening is of the

utmost … utmost … STRATEGICSTRATEGIC importance! importance!

*Listening is a proper … *Listening is a proper …

CORECORE VALUE VALUE !! *Listening is … *Listening is … TRAINABLE TRAINABLE !!

*Listening is a … *Listening is a …

PROFESSION PROFESSION !!

EXCELLENCEEXCELLENCE

Excellence “Twitter-ized”:Excellence “Twitter-ized”:

X140X140

EXCELLENCE in <140 Characters:EXCELLENCE in <140 Characters:

Cherish your people, Cherish your people, cuddle your customers, cuddle your customers, wander around, “try it” wander around, “try it” beats “talk about it,” beats “talk about it,” Excellence or else, tellExcellence or else, tell

the truth.the truth.126 with spaces/Q.E.D.126 with spaces/Q.E.D.