Re-Imagine Excellence: Leadership Strategies for Tomorrow's World

1. +1/-1

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

3. “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.”

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

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

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

7. 1/721: “The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett

8. “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

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

10. CORPORATE MANDATE #1 2014:Your principal moral obligation as a 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!

11. “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

12. “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

13. “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

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

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

16. Robot Wars!“The combination of new market rules and new technology was turning the stock market into, in effect,awarof robots.”—Michael Lewis, “Goldman’s Geek Tragedy,” Vanity Fair, 09.13

17. “Steve, you’re costing me a hundred nanoseconds. [$100M/Millisecond] Can you at least cross it diagonally?”

18. $100,000,000/Millisecond: “Spivey* was all over him about the slightest detours. For instance, every so often the right-of-way crossed over from one side of the road to the other, and the line needed to cross the road within its boundaries. These constant road crossings irritated Spivey—Williams was making sharp right and left turns. ‘Steve, you’re costing me a hundred nanoseconds,’ he’d say. ‘Can you at least cross it diagonally?’” —Michael Lewis, Flash Boys *Dan Spivey, Spread Network, $300M, 3 milliseconds (15-12), Chicago-NJ

19. GeneticsRoboticsInformaticsNanotechnology

20. GeneticsRoboticsInformaticsNanotechnology**Decision #1: GRIN and BEAR it? GRIN andSAVOR it?

21. Antifragile*: Things That GainFrom Disorder —Nassim Nicholas Taleb*Not to be confused with … RESILIENCE

22. EVERYTHING. EVERYBODY. EVERYWHERE.

23. IoT IoE

24. 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!]

25. “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

26. 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

27. “Robotics will drive this very innovation. Landing page tuning will bust out of the Internet and become ‘interaction tuning.’ Companies will apply their analytics engines to all interaction opportunities with people everywhere: online, in the car, in a supermarket isle, on the sidewalk, and of course in your home.”—Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

28. Walmart SV =1,500

29. EXCELLENCE!

31. 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

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

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

34. 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

35. Hard is Soft. Soft is Hard.

36. Wall Street Journal, 0910.13: “What matters most to a company over time? Strategy or culture?” Dominic Barton,* MD, McKinsey & Co.: “Culture.” Bill Walsh,* NFL Hall of Fame Coach:“Culture precedes positive results. It doesn’t get tacked on as an afterthought on the way to the victory stand.” Lou Gerstner,* former CEO, IBM: “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis, and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the game—IT IS THE GAME.” *Note that all three of these CEOs are/were charter members of the Hard-ass School of Management. This was a realization that emerged for each one over time, but is stated here—UNEQUIVOCALLY.

37. “Of Service”

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

39. WINNERS’ Rules!

40. 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 keep developing human capital. They get radically customer-centric.

41. WINNERS!

42. THE RED CARPET STORE (Flemington NJ)

43. 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)

44. +1/-1

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

46. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious …Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

47. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious:Buy a very largeone and just wait.”—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

48. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies.They found thatNONEofthe long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.”—Financial Times

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

50. I loveMiddle-sized Niche- Micro-niche Dominators! "Own" a niche through Excellence!