The Magicians of Motueka: Thriving in a Changing World

1. -1/+1

2. S&P 500 -1/+1* *Every …2weeks! Source: Richard Foster (via Rita McGrath/HBR/12.26.13

3. Silicon Valley = #1

4. “The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.”—Paul Saffo

5. “The essence of capitalism is encouraging failure, not rewarding success.”—Nassim Nicholas Taleb/Antifragile

6. “Data drawn from the real world attest to a fact that is beyond our control:EVERYTHING IN EXISTENCE TENDS TO DETERIORATE.”—Norberto Odebrecht, Education Through Work(APPLE cover story/June 2014)

7. Motueka, New Zealand

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

9. MITTELSTAND* *“agile creatures darting between the legs of the multinational monsters”(Bloomberg BusinessWeek, 10.10)

10. “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

11. 1,600cheeses 1,400varieties of hot sauce 12,000wines priced from $8 to $8,000 a bottle 6,000Christmas ornaments 50,000trims PASSION

12. “INSANELY GREAT”STEVE JOBS“RADICALLY THRILLING” BMW

14. 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

15. “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

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

17. Enterprise* (*at its best):An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners

18. ORGANIZATIONS EXIST TO SERVE. PERIOD. LEADERS LIVE TO SERVE. PERIOD.

19. 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, they uncovered 344 companies that qualified as statistically “exceptional.”) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS. They get radically customer-centric. THEY KEEP DEVELOPING HUMAN CAPITAL.

20. CORPORATE [And GOVERNMENT ]MANDATE #1 2014:Your principal moral obligation as a business 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!

21. In Good Business, Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, has the RESPONSIBILITY to increase the“SUMOF HUMANWELL-BEING.” Business is NOT "part of the community."In terms of how adults collectively spend their waking hours … BUSINESSISTHECOMMUNITY.And should act accordingly. The (REALLY) good news:Community mindedness is a great way [THE best way?] to have spirited/committed/ customer-centric work force—and, ultimately, increase [maximize?] profitability!

22. 1. Giant STUMBLES 2. MITTELSTAND mainstays/ Be the BEST 3. NUMBERS game/ FAILURE “encouraged” 4. EXCELLENCE/SERVICE 5. MORAL imperative/ PEOPLE DEVELOPMENT

23. Tom Peters’ Re-ImagineEXCELLENCE! Gulf International Convention & Exhibition Center/10 June 2014 (slides at tompeters.com; also see excellencenow.com)

24. Part 1: INTRODUCTION/EXCELLENCE Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

25. Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

26. 1,000,000

27. “The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early throes of a Great Restructuring. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

28. China/Foxconn: 1,000,000robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

29. “Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3minutes. [Pilots] have become, it’s not much of an exaggeration to say, computer operators.” Source: Nicholas Carr, “The Great Forgetting,” The Atlantic, 11.13

30. “Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci/multiple bypass heart-surgery robot

31. “Human level capability has not turned out to be a special stopping point from an engineering perspective. ….” Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

32. Robot Wars/$100M/millisecond“The combination of new market rules and new technology was turning the stock market into, in effect,awarof robots.”—Michael Lewis

33. “Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.”

34. EVERYTHING. EVERYBODY. EVERYWHERE.

35. IoT IoE

36. IoT/The Internet of Things IoE/The Internet of Everything M2M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasive computing Industrial Internet Etc.* ***** *“More Than 50 BILLION connected devices by 2020” —Ericsson **Estimated 212 BILLION connected devices by 2020—IDC ***“By 2025 IoT could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE [The WAGs to end all WAGs!]

37. “Ford is working with the healthcare industry on a solution that would notify a nearby hospital if you were having a heart attack in your car, which can send an ambulance before you even know you’re having one. …” —Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things

38. SENSOR PILLS:“… Proteus Digital 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 into a safely digested pill that is swallowed. 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 verify if a patient has taken her or his medications.This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 BILLION in emergency room visits, hospitalization, and doctor visits. An average of 130,000 Americans die 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

39. Walmart SV =1,500

40. [MUCH] More to Come

41. GeneticsRoboticsInformaticsNanotechnology

42. 1/721: “The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett

43. “If I had to pick one failing of CEOs, it’s that … —Co-founder of one of the largest investment services firms in the USA/world

44. “If I had to pick one failing of CEOs, it’s that …they don’t read enough.”

45. Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

46. “Business has to give people enriching, rewarding lives …

47. #1/4,096 “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

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

49. “You have to treat your employees like customers.”—Herb Kelleher, upon being asked his “secret to success”Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketingAA’s Annual Meeting)

50. "When I hire someone, that's when I go to work for them.”—John DiJulius, "What's the Secret to Providing a World-class Customer Experience"