Tom Peters’ RE-IMAGINE ! EXCELLENCE/2017 Mini-MASTER 09 December 2016

1. Tom Peters’ RE-IMAGINE! EXCELLENCE/2017 Mini-MASTER 09 December 2016 (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 23-part Monster-Master at excellencenow.com)

2. THE SHOWER CURTAIN COMMANDMENT

3. CONRAD SAYS …

4. CONRADHILTON, at a gala celebrating his career, was called to the podium and asked,“What were the most important lessons you learned in your long and distinguished career?”His answer …

5. “Remember to tuck the shower curtain inside the bathtub.”

6. “Amateurs talk about strategy. Professionals talk about logistics.” —General Omar Bradley, Commander of American troops/D-Day

7. “EXECUTION ISSTRATEGY.”—Fred Malek

8. BE THE BEST (VITALITY THROUGH SMEs)

9. AND THE WINNERS AREN’T/ARE

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

11. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for1,000U.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

12. “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

13. AND THE WINNERS AREN’T/ARE

14. SME Power: “Research shows that new, small companies create almost all the new private sector jobs—and are disproportionately innovative.” Source: Superstar fund manager Gervais Williams, The Future Is Small: Why AIM [Alternative Investment Market] Will Be the World’s Best Market Beyond the Credit Boom.

15. Retail Superstars: Inside the 25 Best Independent Stores in America—by George Whalin

16. JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:“An adventure in ‘shoppertainment,’ begins in the parking lot and goes on to 1,600 cheeses and 1,400 varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 a bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5,000:98,000-square-foot “shop” features 6,000 Christmas ornaments, 50,000trims, and anything else you can name pertaining to Christmas. …” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

17. “AMERICA’S BEST RESTROOM” —Sixth Annual competition sponsored by Cintas Corporation, a supplier of restroom cleaning and hygiene products

18. Jungle Jim’s: “The props can also be a bit bizarre. Two men’s and women’s Porta Potties situated in the front area of the store look as though they belong on a construction site rather than in a food store. But they are false fronts, and once through the doors, customers find themselves in beautifully appointed restrooms. These creative facilities were recognized as … ‘America’s Best Restroom’ … in the Sixth Annual competition sponsored by Cintas Corporation, a supplier of restroom cleaning and hygiene products. …”

19. METRO BANK:Get ’Em Away From the ATM and Into the Branches:7 days/week 7:30A-8:00P (Fri/Midnight)7:30AM = 7:15AM8:00PM = 8:15PMSource: Vernon Hill, Fans, Not Customers, How to Create Growth Companies in a No Growth World

20. 2,000,000+ dog biscuits/yr (Tom, Vernon Hill, and Sir Duffield/“Duffy”)

21. The Commerce Bank*/Metro Bank Model“Are you going to COSTCUT your way to prosperity?”(“Cost-cutting is a death spiral.”)Or …“Are you going to SPENDyour way to prosperity?”Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World(*Commerce Bank sold to TD Bank for $8.5B)

22. The Commerce Bank/Metro Bank Model“OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.”Source: Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

23. The Commerce Bank/Metro Bank Model“WE WANT THEM IN OUR STORES.”Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

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

25. Baader (Iceland/80% fish-processing systems) Gallagher (NZ/electric fences) W.E.T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (specialty adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O.C. Tanner (employee recognition/$400M) Hoeganaes (powder metallurgy supplies) Hidden Champions* of the 21st Century: Success Secrets of Unknown World Market Leaders/Hermann Simon (*1, 2, or 3 in world market; <$4B; low public awareness)

26. “ ‘Commodity’ is a state of mind. ANYTHING can be DRAMATICALLY differentiated.” Bo Burlingham,Small Giants: Companies That Choose to Be Great Instead of Big)

27. Small Giants: Companies that Chose to Be Great Instead of Big (Bo Burlingham) “THEY CULTIVATED EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises. “EACH COMPANY HAD AN EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYin which it did business —a relationship that went well beyond the usual concept of `giving back.’ “The companies had what struck me as UNUSUALLY INTIMATE WORKPLACES. “I noticed thePASSIONthat the leaders brought to what the company did.THEY LOVED THE SUBJECT MATTER, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion.”

28. The local plumber or electrician does not provide a “commodity service” … if he knows his job if he is learning new tricks all the time if he has a good disposition if he shows up on time if he is neatly dressed if he has a spiffy truck if he cleans up so that the client could “eat off the floor” after he leaves if he volunteers to do a few tiny tasks outside the one at hand—gratis if he even goes so far as to create a blog with occasional posts featuring practical tips for his clientele—e.g., a tiny Virginia swimming pool company became a literal best-in-world adopting this [aggressive] social-media strategy.

29. 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”—then a final 27) 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.

30. “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

31. “Wicked problems”

32. VALUE-ADDED

33. TGRs & the “8/80” Fiasco

34. Customers describing their service experience as “superior”: 8% Companies describing the service experience they provide as “superior”: 80% —Source: Bain & Company survey of 362 companies, reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience?

35. <TGWand …>TGR[Things Gone WRONG-Things Gone RIGHT]

36. Conveyance:Kingfisher Air Location:Approach to New Delhi

37. “May I clean your glasses, sir?”

38. “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”—Henry Clay "Let's not forget that small emotions are the great captains of our lives."–—van Gogh

39. “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee.IT’S ENTERTAINMENT.”—Howard Schultz“When Pete Rozelle ran the National Football League, it was a football business, and a good one.NOW IT’S TRULY AN ENTERTAINMENT BUSINESS.”—Paul Much, Investment AdvisorFrom George Whalin’s Retail Superstars: on Jungle Jim’s International Market, Fairfield, OH:“AN ADVENTURE IN‘SHOPPERTAINMENT.’ ”Boston Globe: “Why did you [Berkshire Hathaway] buyJordan’s Furniture?”Warren Buffett: “Jordan’s is spectacular. IT’S ALL SHOWMANSHIP.”

40. Consider: Hire a theater director

41. CARL’S STREETSWEEPER**Flowerson the showroom floor/ courtesy Stanley Marcus

42. TGRs (on steroids):L(Very)BTs

43. Big carts = 1.5X Source: Walmart

44. Las Vegas Casino/2X:“When Friedmanslightly curvedthe right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who entered increased fromone-thirdto nearlytwo-thirds.” —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

45. (1) Amenable to rapid experimentation/ failure “free” (PR, $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier (5) An “Attitude”

46. 10 August 2011!

47. Design RULES!APPLEmarket cap > Exxon Mobil**10 August 2011

48. “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.DESIGN IS THE FUNDAMENTALSOUL OF A MAN-MADE CREATION.”—Steve Jobs

49. “He craved products that didn’t force adjustments of behavior, that gave people a feeling of gratitude that someone else thought this through in a way that made your life easier.” —Laurene Powell Jobs

50. “ In some way, by caring, we are actually serving humanity. People might think it’s a stupid belief, but it’s a goal—it’s a contribution that we hope we can make, in some small way, to culture.” —Jony Ives