Tom Peters’ EXCELLENCE. ALWAYS. National Enterprise Innovation Conference B2B/London/27June 2006

1. Tom Peters’EXCELLENCE. ALWAYS.National Enterprise Innovation ConferenceB2B/London/27June 2006

2. Slides* at …tompeters.com*also “long”

3. TheIrreducible209+

4. A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter, Gary Hamel, Jim Collins, etc. Finally, he’d had enough. “What, if anything,” he asked, “do you believe ‘for sure’?”I mumbled something, but his query started rumbling around in my mind. Three days later, wandering on a Sunday in London, the idea of “the irreducibles” occurred to me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before I knew it, a few days later, the list had grown to 209 items. Hence “The Irreducible209” that follows.Tom Peters

5. EXCELLENCE. CASE.EPSILON.

6. This is not about …“customer centrism”“integrated marketing”etcetcetcIt is about …

7. It is about … sellin’ a whole lotta stuff and having customers go bananas with loveto the point that they tell every damn friend they have and then start buttonholing strangers on trains and planes and busses.

8. Goodnight and Good Luck.

9. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

10. 43,000

11. “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327; 500 of 900 Research; JPMorgan Chase—30% back-office by 12.31.07

12. “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14

13. EXCELLENCE. THE MANDATE.

14. “If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff. U. S. Army

15. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin

16. “We are in a brawl with no rules.”—Paul Allaire

17. S.A.V.

18. Screw Around Vigorously

19. Sam’s Secret #1!

20. “Tom, very simple. Sam was not afraid to fail.”—David Glass to TP, on the occasion of Sam’s induction into The Sales & Marketing Hall of Fame

21. “We made mistakes. 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 No. 5. By the time our rivals are ready with wires and screws, we are on version No. 10.It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg

22. “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells.You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter

23. “Rewardexcellent failures. Punishmediocre successes.”Phil Daniels, Sydney exec

24. “FAIL, FAIL AGAIN. FAIL BETTER.”—Samuel Beckett

25. EXCELLENCE. STARTERS.

26. Radio City Music HallSeptember 2005

27. Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205

28. P.P.E.E.R.R.E.

29. People.Product.Execution.Enthusiasm.Relentless.Re-invent.Excellence.People.Product.Execution.Enthusiasm.Relentless.Re-invent.Excellence.

30. EXCELLENCE. THE WORD.

31. SynonymsPurityTranscendenceVirtueEleganceMajestyAntonymsMediocritySynonymsPurityTranscendenceVirtueEleganceMajestyAntonymsMediocrity

32. EXCELLENCE. GAMECHANGER.

33. Excellence1982: 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”

34. ExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields $85,000EI: $10,000 yields $140,050*Forbes/Excellence Index/Basket of 32 publicly traded stocks

35. EXCELLENCE. ADVERSARIES.

36. Progress?

37. Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press“The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.”Approximately 640 Index entries: Customer/s (service, retention, loyalty),4. People (employees, motivation, morale, worker/s),0. Innovation (product development, research & development, new products),0.

38. M.I.A.*:Talk.(Present.)Listen.(Interview.)Sell.(Life = Sales.)Do.(Execution-Implementation.)Talent.(Recruit-Develop-Retain.)Project Management.(Create. Solicit support. Execution. Adoption-Client “Culture Change.”)Product. (“It.”) Innovation.(Design. Creativity. “Buzz-building.” Politics.)Leadership.(USMA, etc.) E.Q. (Connect.)“Culture” Change. (Lasting impact.) Diversity.(Cross-cultural Effectiveness.)Career Creation.(Brand You life-lifestyle.)Wellness.(Life.) *B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

39. EXCELLENCE. ALWAYS.

40. Them-UsTom Peters/0626.2006

41. Them-Us

42. “Them” “Us”Strategy EXECUTIONStrategy MANAGEMENTStrategy PeopleStrategy “Culture”-ValuesPlanning ActionMarketing Selling/SalesMarketing Customers as Raving FansCustomers ClientsMicro-segmentation Big Stuff (Women, Boomers)Cost minimization Revenue maximizationSynergy/“Efficiencies” Decentralization“Strategic supplier Pioneering supplierProcess ProjectMen WomenLeadership Management + LeadershipStandardization Exceptionalism (53 = 53)

43. “Them” “Us”Big Mid-size (bacteria)Growth by merger Organic growthBuy market share Create NEW marketsEfficient, streamlined Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunityFearful of losing Aggressive pursuit of winningPlan PrototypeCareful evaluation Another prototypeRevised plan Another prototypePeople/Employees TalentEffective HR department Rockin’ Talent Development CenterBenchmark against the Benchmark against the “best”-“industry leader” “coolest”

44. “Them” “Us”Benchmark “Future”markOrderly career progression “Up or Out” (PDQ)Head HeartIQ EQ“Professional” PassionateStoic, humble leaders Noisy, emotional “characters” in chargeHire for Resume Hire for intangiblesMeasured-thoughtful Relentless, pig-headedapproach determinationTeamwork comes first Teamwork and disruptive individuals equal billingListen to customers Lead customersCustomer “involvement” Intimate-Seamless customer inter-twining

45. “Them” “Us”MBM (Management MBWA by memo/meeting)MBA MFA/School of Hard KnocksShareholder Value Great people-product rule comes first (Sharhldr value derivative)Work smart Work hardBuilt to last Built to Rock the WorldReward successes Reward (XCELLENT) failures Quality first! Design 1TQuality first! Innovation 1THigh-quality Jaw-dropping Experience transactionCVs demo consistent CVs feature Magic Moments performanceGood grades Cool stuff Operational excellence World-rocking INNOVATION

46. “Them” “Us”Brand LovemarkBest analysis wins Best STORY wins“Beyond politics” Politics-is-life, the rest is detailsOutsource Best source“Motivate” Send on QUESTS“Motivate” Invite to join adventure“Motivate” Don’t De-motivateMeasured language HOT languageProduct-Service Gamechanging SOLUTION, Thrilling EXPERIENCE,DREAM come true,LOVEMARKPastel Technicolor

47. “Them” “Us”Better Different“Mission success” “Mission EXCELLENCE”Very goodEXCELLENCE. ALWAYS.

48. A Life’s Work1966: MBWA/Do>Talk1974: Behavioralism: Do>Talk/IMPLEMENTATION>Strategy1979: 7S/Emphasis on “Soft Ss” (“Hard is soft. Soft is hard.”)1982: “Beyond strategy”EXCELLENCE “Bias for Action”/“Do it. Fix it. Try it again.”“Close to the Customer”MBWA (as metaphor) “Management Style”1990: “Innovate or Die”DesignWomenBrand YouWOW! (Passion. Enthusiasm. Energy. Emotion. Technicolor)2000: “The Work Matters”PSF+BY+WowProjects = V.A. Source #1Brand “Inside”

49. EXCELLENCE. ALWAYS.

50. “Why in the world did you go to Siberia?”