Tom Peters’Tom Peters’

RE-IMAGINE.RE-IMAGINE.EXCELLENCE.EXCELLENCE.

INNOVATE. INNOVATE. NOW.NOW.OR PERISHOR PERISH..

2014 PAI Market Partner Conference2014 PAI Market Partner Conference05 December/Punta Cana05 December/Punta Cana

(slides at tompeters.com; also see excellencenow.com)(slides at tompeters.com; also see excellencenow.com)

Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. RobotDr. Robot

““Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s

da Vincida Vinci /multiple bypass heart-surgery robot/multiple bypass heart-surgery robot

((“Almost all health care people get is going to be done by “Almost all health care people get is going to be done by algorithms within a decade or two.”algorithms within a decade or two.” —Michael Vassar/MetaMed—Michael Vassar/MetaMed))

““The combination of new The combination of new market rules and new market rules and new

technology was turning technology was turning the stock market into, in the stock market into, in

effect,effect,

aa warwar oof f robotsrobots.”.” —Michael —Michael

Lewis, “Goldman’s Geek Tragedy,” Lewis, “Goldman’s Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

““Automation has become so sophisticated Automation has become so sophisticated that on a typical passenger flight, a that on a typical passenger flight, a

human pilot holds the controls for a grand human pilot holds the controls for a grand total oftotal of

… … 33 minutes minutes..

Pilots have become, it’s not much of an Pilots have become, it’s not much of an exaggeration to say, computer operators exaggeration to say, computer operators

[c.f., AF447[c.f., AF447!!].” ].” —Nicholas Carr, —Nicholas Carr, The AtlanticThe Atlantic, 11.13, 11.13

Let’s Welcome Our Newest [Official]

Board Member: “Just like other “Just like other

members of the board, members of the board, the the alalggorithmorithm [VITAL] g gets to vote ets to vote

on whether the firm on whether the firm makes an investment in a makes an investment in a ssppecific comecific comppananyy or not or not..

The program is the sixth The program is the sixth member of DKV's board.”member of DKV's board.”

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

““The next frontier is a wirelessThe next frontier is a wireless

technology called technology called v2xv2x, ,

which companies in America, Europe and which companies in America, Europe and Japan are developing. Japan are developing. It encaIt encappsulates sulates vehicle-to-vehicle and vehicle-to-vehicle-to-vehicle and vehicle-to-

infrastructure communications.infrastructure communications. Special Special modems allow modems allow

v2x-equipped cars to talk to each other andv2x-equipped cars to talk to each other and to the world around them.” to the world around them.”

——Mary Barra, CEO, GM, in the Mary Barra, CEO, GM, in the EconomistEconomist, December 2014, December 2014

SENSOR PILLS:SENSOR PILLS: “Proteus Digital “Proteus Digital Health Health is one of several pioneers in sensor-based 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 technology. They make a silicon chip the size of a grain of sand that is embedded

into a safely digested pill that is swallowed. into a safely digested pill that is swallowed. When the chiWhen the chipp mixes with mixes with stomach acids, the stomach acids, the pprocessor is rocessor is ppowered by the bodowered by the bodyy’s ’s electricitelectricityy and transmits data to a and transmits data to a ppatch worn on the atch worn on the skin. That skin. That ppatch, in turn, transmits data via Bluetooth to atch, in turn, transmits data via Bluetooth to a mobile aa mobile apppp, which then transmits the data to a central , which then transmits the data to a central database where a health technician can verifdatabase where a health technician can verifyy if a if a ppatient has taken her or his medicationsatient has taken her or his medications.. ““This is a bigger deal than it may seem. In 2012, it was estimated that people not This is a bigger deal than it may seem. In 2012, it was estimated that people not

taking their prescribed medications cost taking their prescribed medications cost $258 billion$258 billion in emergency room in emergency room

visits, hospitalization, and doctor visits. An average of visits, hospitalization, and doctor visits. An average of 130,000 Americans 130,000 Americans diedie each year because they don’t follow their prescription regimens closely each year because they don’t follow their prescription regimens closely enough..” [The FDA approved placebo testing in April 2012; sensor pills are enough..” [The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.] ticketed to come to market in 2015 or 2016.]

Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of PrivacyAge of Context: Mobile, Sensors, Data and the Future of Privacy

Walmart SV =Walmart SV =

11,,500500

““What’s really interesting isWhat’s really interesting is

that over the that over the NEXTNEXT FIVEFIVE YEARSYEARS

we’re going to see every industry exposed to we’re going to see every industry exposed to reinvention of how people put products and reinvention of how people put products and services together, how work is done, what services together, how work is done, what

kind of jobs and skills are needed, what can kind of jobs and skills are needed, what can be handled by technology.”be handled by technology.” — —John SculleyJohn Sculley

““Software is Software is eating the eating the

world.”world.”——Marc AndreessenMarc Andreessen

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

S&P 500S&P 500

-1/+1*-1/+1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

Enter the Enter the Mittelstanders: Mittelstanders: Middle-sized Middle-sized

Niche/Micro-niche Niche/Micro-niche Dominators!Dominators!

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 Motueka & the Mittelstand TrifectaThe Magicians of Motueka & the Mittelstand Trifecta

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., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer);

custom fabric from custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

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

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

98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000 Christmas Christmas

ornaments, ornaments, 50,00050,000 trims, and anythingtrims, and anything else you can else you can

name pertaining to Christmas. …”name pertaining to Christmas. …”

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

““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

Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent

““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,

the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground

fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming

pools, and we also happen to build pools, and we also happen to build them.’”them.’”

——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype

Michael Raynor and Mumtaz Ahmed’: Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*::

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no otherThere are no other rules.rules.(*From a database of over 25,000 companies from hundreds of industries covering 45 years, (*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.”)the authors uncovered 344 companies that qualified as statistically “exceptional.”)

InnovateInnovate or Perish/ or Perish/

Extreme Times Extreme Times

DEMANDDEMAND Extreme SolutionsExtreme Solutions

““Insanely great”Insanely great” (Steve Jobs)

“Radically thrilling”“Radically thrilling” (BMW)

“Astonish me!”“Astonish me!” (Sergei Diaghilev, to a lead dancer)

“Build something great!”“Build something great!”

(Hiroshi Yamauchi, CEO, Nintendo, to a senior game designer)

“Make it immortal!”“Make it immortal!” (David Ogilvy, to a copywriter).

““You can’t behave You can’t behave in a calm, rational in a calm, rational manner. You’ve got manner. You’ve got to be out there on to be out there on the the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

11/48/48

1/48/1966-20141/48/1966-2014

WTTMSWWTTMSW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

In Search of Excellence:In Search of Excellence: Bedrock “Eight Basics” Bedrock “Eight Basics”

1. 1. A Bias for A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomy and y and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight PropertiesProperties

READY.READY.FIREFIRE!!AIM.AIM.

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

““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 We fixed them by doing it over and over, again and againover and over, again and again.. We We

do the same today. While our competitors are still do the same today. While our competitors are still sucking their thumbs trying to make the design sucking their thumbs trying to make the design

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##55..

By the time our rivals are ready with wires and screws, By the time our rivals are ready with wires and screws,

we are on version we are on version ##1010.. It gets back It gets back

to planning versus actingto planning versus acting: : We act We act from dafrom dayy

oneone; ; others others pplan how tolan how to p planlan——for monthsfor months.” .” —Bloomberg by Bloomberg—Bloomberg by Bloomberg

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

—BusinessWeek, “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”“cornerstone” of effective approach to “rebalancing” of effective approach to “rebalancing” companycompany

portfolios in the face of changing and uncertain global economic conditions portfolios in the face of changing and uncertain global economic conditions

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

able to seriously play.able to seriously play.

‘‘Serious Serious plplaay’y’ isis not an oxymoron; it is not an oxymoron; it is

the the essenceessence of of innovationinnovation.”.”

—Michael Schrage,—Michael Schrage, Serious PlaySerious Play

FAIL.FAIL. FORWARD. FORWARD.

FAST.FAST.

““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

““REWARDREWARD excellent failures. excellent failures. PUNISHPUNISH mediocre mediocre

successes.”successes.”—Phil Daniels, Sydney exec—Phil Daniels, Sydney exec

““In business, youIn business, you REWARDREWARD people people

for taking for taking RISKS.RISKS. WHEN IT WHEN IT DOESN’T WORK DOESN’T WORK

OUT YOU PROMOTE OUT YOU PROMOTE THEMTHEM -BECAUSE THEY WERE -BECAUSE THEY WERE

WILLING TO TRY NEW THINGSWILLING TO TRY NEW THINGS.. If If people tell me they skied all day and people tell me they skied all day and never fell down, I tell them to try a never fell down, I tell them to try a

different mountain.”different mountain.” —Michael Bloomberg—Michael Bloomberg

WTTMSWTTMSASTMSUASTMSUWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFAND AND SCREWSSCREWSTHETHEMOSTMOSTSTUFFSTUFFUPUPWINSWINS

Tempo/Tempo/TemperamentTemperament

““If things seem under If things seem under control, you’re just not control, you’re just not going fast enough.” going fast enough.”

——Mario Andretti, race driverMario Andretti, race driver

““I’m not comfortable I’m not comfortable unless I’m uncomfortable.” unless I’m uncomfortable.”

——Jay ChiatJay Chiat

““If it works, it’s obsolete.”If it works, it’s obsolete.”

——Marshall McLuhanMarshall McLuhan

““At the heart of Boyd’s thinking is an idea labeled ‘OODA Loops.’ At the heart of Boyd’s thinking is an idea labeled ‘OODA Loops.’

OODA stands for the Observe-Orient-Decide-Act cycle. OODA stands for the Observe-Orient-Decide-Act cycle. In In short, the short, the pplalayyer with the er with the

qquickest OODA Loouickest OODA Loopps s disorients disorients

the enemthe enemyy to an extreme to an extreme dedeggreeree.. In the world of aerial combat, for example, the In the world of aerial combat, for example, the

confused adversary subjected to an opponent with short OODA cycles confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine 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 gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator), and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator),

Soviet MiGs flown by Chinese pilots were faster and could climb Soviet MiGs flown by Chinese pilots were faster and could climb higher, but our F-86 had “faster transients”—it could change direction higher, but our F-86 had “faster transients”—it could change direction

more quickly; hence our technically inferior craft (by conventional more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10:1 kill ratio.”design standards) achieved a 10:1 kill ratio.”

——Robert Coram, Robert Coram, BOYD: The Fighter Pilot Who Changed the Art of WarBOYD: The Fighter Pilot Who Changed the Art of War

WTTMSASTMSUWTTMSASTMSUTFTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWSSCREWSTHETHEMOSTMOSTSTUFFSTUFFUP UP THETHEFASTESTFASTESTWINSWINS

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWSSCREWSTHETHEMOSTMOSTSTUFFSTUFFUP UP THETHEFASTESTFASTEST

WINSWINS

““Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEEDSUCCEED?”?”Source: ad for Economist Source: ad for Economist ConferenceConference/0328.13/Berkeley CA (caps are /0328.13/Berkeley CA (caps are

EconomistEconomist))

Value Added I:Value Added I:ADDING A ADDING A STRATEGIC STRATEGIC SERVICESSERVICES

COMPONENTCOMPONENT

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

IBIBMMtoto

IIBBMM

UUPPSS toto

UPUPSS

Value Added II:Value Added II:

DESIGN DESIGN PRIMACYPRIMACY

Design Design #1#1

APPLEAPPLE market market capitalizationcapitalization

>> ExxonExxon MobilMobil**

*August 2011*August 2011

HHypypothesisothesis: Men : Men

CANNOTCANNOT design for women’s design for women’s

needsneeds!!??!!??

Value Added III:Value Added III:

Women BUY Women BUY [Everything][Everything]!!

““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 W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more 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. 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 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 …”comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Women areWomen are THETHE majority majority

market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the

salesperson communicates to salesperson communicates to the buyer’s gender.”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 Research suggests that to succeed, start that to succeed, start

by promoting women.”by promoting women.”——Nicholas Kristof, “Twitter, Women, and Power,” Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes

““In my experience, In my experience, women make much women make much

better executives than better executives than men.”men.” —Kip Tindell, CEO, Container Store—Kip Tindell, CEO, Container Store

Value Added IV:Value Added IV:

EXPERIENCE DESIGN & THEEXPERIENCE DESIGN & THE

“AGE OF “AGE OF TGRs”*TGRs”*

*Things Gone *Things Gone RIGHTRIGHT

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

““I would rather enI would rather enggaagge in a e in a Twitter conversation with a sinTwitter conversation with a singgle le customer than see our comcustomer than see our comppananyy

attemattemppt to attract the attention of t to attract the attention of millions in a coveted Sumillions in a coveted Supper Bowl er Bowl commercialcommercial.. Why? Because having people discuss your Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more brand directly with you, actually connecting one-to-one, is far more

valuable—not to mention far cheaper! …valuable—not to mention far cheaper! …““Consumers want to discuss what they like, the companies they Consumers want to discuss what they like, the companies they

support, and the organizations and leaders they resent. They want a support, and the organizations and leaders they resent. They want a community. They want to be heard. …community. They want to be heard. …

““[I]f we engage employees, customers, and prospective customers in [I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and meaningful dialogue about their lives, challenges, interests, and

concerns, we can build a community of trust, loyalty, and—possibly concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the over time—help them become advocates and champions for the

brand.”brand.”

——Peter Aceto, CEO, Peter Aceto, CEO, TanTanggerineerine (from the Foreword to (from the Foreword to A World A World

Gone Social: How Companies Must Adapt to SurviveGone Social: How Companies Must Adapt to Survive, by Ted Coine & Mark , by Ted Coine & Mark Babbit)Babbit)

Value Added V:Value Added V:

LBTs*LBTs**Little *Little BIGBIG Things Things

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

an entrance corridor to one property, an entrance corridor to one property, he was ‘amazed at the magnitude of he was ‘amazed at the magnitude of

change in pedestrians’ behavior’—the change in pedestrians’ behavior’—the percentage who entered increased percentage who entered increased

from from oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

““Flash When I work with experimental digital gadgets, I am always 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 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 profound unforeseen effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as 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 the ease of use of a button can sometimes alter behavior patterns. For

instance, Stanford University researcher Jeremy Bailinson has instance, Stanford University researcher Jeremy Bailinson has

demonstrated that …demonstrated that … chanchangginingg the height the height of one’s avatars in of one’s avatars in

immersive virtual realitimmersive virtual realityy transforms transforms

self-esteem and social self-esteem and social self-self-pperceercepptiontion.. Technologies are extensions of Technologies are extensions of

ourselves, and, like the avatars in Jeremy’s lab, our identities can be 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 shifted by the quirks of gadgets. It is impossible to work with

information technology without also engaging in social engineering.”information technology without also engaging in social engineering.”

——Jaron Lanier, Jaron Lanier, You Are Not a GadgetYou Are Not a Gadget

““You get a sense of the scale and You get a sense of the scale and intricacy of the task by considering the intricacy of the task by considering the sound effects alone: The game contains sound effects alone: The game contains

54,000 pieces of audio and 40,000 lines of 54,000 pieces of audio and 40,000 lines of

dialogue.dialogue. There are 2,700 There are 2,700 different noises for different noises for

footstefootstepps alone s alone dedeppendinendingg on whose on whose foot is stefoot is steppppiningg on on whatwhat.”.” ——Sam LeithSam Leith onon Halo 3, Halo 3, from Jane McGonigal, from Jane McGonigal,

Reality Is Broken: Why Games Make Us Better and How They Can Change the WorldReality Is Broken: Why Games Make Us Better and How They Can Change the World

BEDROCK: BEDROCK: MATCHLESSMATCHLESS

TALENTTALENT

““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

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

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!

““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, Michigan, exists. It defines what we do and Michigan, exists. It defines what we do and

how we do it. It is the single shared belief of how we do it. It is the single shared belief of our entire team.”our entire team.”

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

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: 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 good extent of your abilities. The good news: 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!

!!

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!!