Tom Peters’ EXCELLENCE. ALWAYS. XAlways/Austin/07 September 2006

1. Tom Peters’EXCELLENCE. ALWAYS.XAlways/Austin/07 September 2006

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

3. That’s a Big Number ….

4. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

5. “There is no job that is America’s God-given right anymore.”—Carly Fiorina/HP/January2004

6. “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327 (500 of 900 Research)

7. EXCELLENCE.MANDATE.

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

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

10. “Forbes100” from 1917 to 1987:39members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” significantly underperformed the market; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987.S&P 500 from 1957 to 1997:74 members of the Class of ’57 were alive in ’97; 12(2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

11. “It is generally much easier to kill an organization than change it substantially.”—Kevin Kelly, Out of Control

12. (Practical)Implication?“Go for it!”(Why not—alternative is slow death, at best)

13. C.E.O.to C.D.O.

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

15. TP#1*:Netscape!*Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)

16. “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”—Kevin Kelly, New Rules for the New Economy

17. New Economy?!Sergey + Larry > Harvard/370

18. EXCELLENCE. STARTERS.HORRORS.

19. Franchise Lost!TP: “How many of you[600]reallycravea new Chevy?”

20. “Ford, GM and Chrysler do not just make cars expensively … they make bad cars expensively.”—Investec analyst, International Herald, 0805.06

21. Sluggish + Obese + Unimaginative + More Sluggish + More Obese + More Unimaginative + Even More Sluggish + Even More Obese + Even More Unimaginative =NISSAN + RENAULT + GM= Innovative Challenger for Toyota????

22. Oh, Great …Ford: Airplane guy.GM: CFO.

23. Small cars HQ: LA. Big cars HQ: Dallas. Corporate HQ: Atlanta.CEO: Roger Enrico or Lou Gerstner or Meg Whitman. COO: Bob Nardelli. Chairman: George Steinbrenner or Jack Welch or Ross Perot. Vice-chairman & CFO: Warren Buffett. Chief Marketing Officer: Brenda Barnes. Chief Branding Officer: Phil Knight(or Howard Schultz). Chief Innovation Officer: Steve Jobs or Jeff Immelt. Chief/Supply Chain: Raid Wal*Mart or CostCo or Dell. Chief/Dealer Relations: Carl Sewell.

24. EXCELLENCE. STARTERS.BASICS.

25. Did one of ’em ever turn to the other and say:“Wow, I wonder what unimaginable new tools, otherwise not possible, will be brought forth for my daughter Alice, age 17, because of this deal?”

26. People.Product.Clients.Execution.Enthusiasm.Excellence.

27. People.Product.Clients.Execution.Enthusiasm.Excellence.Relentless.People.Product.Clients.Execution.Enthusiasm.Excellence.Relentless.

28. People.Product.Clients.Execution.Enthusiasm.Excellence.Relentless.Senility.People.Product.Clients.Execution.Enthusiasm.Excellence.Relentless.Senility.

29. Forget>“Learn”“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”—Dee Hock

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. ALWAYS.

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

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

38. EXCELLENCE. VALUE ADDED.UP THE LADDER.

39. EXCELLENCE. SOLVE IT.

40. $55B

41. “Big Brown’s New Bag: UPS Aims to Be theTraffic Manager for Corporate America”—Headline/BW

42. EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF++)

43. “ ‘Disintermediation’ is overrated. Those who fear disintermediation should in fact be afraid of irrelevance—disintermediation is just another way of saying that …you’ve become irrelevant to your customers.”—John Battelle/Point/AdvertisingAge/07.05

44. Department Headto …Managing Partner, IS[HR, R&D, etc.]Inc.

45. Up,Up,Up, Upthe Value-added Ladder.

46. The Value-added Ladder/Opportunity-seekingGamechanging SolutionsServicesGoods Raw Materials

47. EXCELLENCE. EXPERIENCE IT.

48. “Experiencesare as distinct from services as services are from goods.”—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

49. Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

50. The Value-added Ladder/Memorable ConnectionSpellbinding ExperiencesGamechanging SolutionsServicesGoods Raw Materials