LONG Tom Peters’ RE-IMAGINE ! EXCELLENCE/2017 Seoul/07 December 2016

1. LONG Tom Peters’ RE-IMAGINE! EXCELLENCE/2017 Seoul/07 December 2016 (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 17-part Master/THE WORKS at excellencenow.com)

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

3. “Since 1996, manufacturing employment in China itself has actuallyfallen by an estimated25 percent. That’s over30,000,000fewerChinese workers in that sector, even while output soared by 70 percent.It’s not that American workers are being replaced by Chinese workers. It’s that both American and Chinese workers are being made more efficient [replaced] by automation.” —Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies

4. “Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's jobs will be eliminated by new computing and robotics technology over the next 20 years, say Deloitte experts.” —Headline, Telegraph (UK), 11 November 2014 “Almost half of U.S. jobs are at high risk of computerization over the next 20 years, according to Oxford academics Carl Benedikt Frey and Michael A. Osborne.” —Harriet Taylor, CNBC, 9 March 2016

5. “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

6. “The median worker is losing the race against the machine.” * —Erik Brynjolfsson and Andrew McAfee, Race AGAINST the Machine *“Occupations intensive in tasks that can easily be computerized are usually in the middle class.” (MIT’s David Autor)

7. “If you think being a ‘professional’ makes your job safe, think again.”—Robert Reich “The intellectual talents of highly trained professionals are no more protected from automation than is the driver’s left turn.”—Nicholas Carr, The Glass Cage: Automation and Us

8. CORPORATE MANDATE #1 2016: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 bonus: This is also the#1 mid- to long-term … profit maximization strategy!

9. #3: Provide a pride- worthy job.* #2: Help people be successful at their current job.** #1: Help people grow/ prepare for an uncertain future.*** *“Provide a secure job.”—NOT POSSIBLE IN 2015. **Success is NOT enough, circa 2015. ***Society—and profitability—demands this. (Or should!)

10. 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, per Csikszentmihalyi, has the RESPONSIBILITY to increase the … “SUM OF HUMAN WELL-BEING.”Business is NOT “part of the community.” In terms of how adults collectively spend their waking hours: Business ISthe community. 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?) growth and profitability.

11. TRAINING = INVESTMENT #1: In the Army,3-star generalsworry about training. In most businesses, it's a “ho-hum” mid-level staff function.

12. 1/4,096: excellencenow.com “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

13. CORPORATE MANDATE #1 2016: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 bonus:THIS IS ALSO THE #1 MID- TO LONG-TERM … PROFIT MAXIMIZATION STRATEGY!

14. BE THE BEST

15. AND THE WINNERS AREN’T/ARE

16. “I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.”—Dick Kovacevich

17. “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

18. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:I’M SURE THERE ARE SUCCESS STORIES OUT THERE, BUT AT THIS MOMENT I DRAW A BLANK.”M & A success rate as measured by adding value to the acquirer:15%Source: Mark Sirower, The Synergy Trap

19. AND THE WINNERS AREN’T/ARE

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

21. JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHIO:“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.” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

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

23. “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

24. Commerce Bank*/Metro Bank:Get ‘Em Away From the ATM and Into the Branches:7X. 7:30A-8:00P. Fri/12A.7:30AM = 7:15AM.8:00PM = 8:15PM.(2,000,000+++ dog biscuits)*to TD Bank fpr $8.5BSource: Vernon Hill, Fans, Not Customers, How to Create Growth Companies in a No Growth World

25. The Commerce/Metro Bank Model“COST CUTTING IS A DEATH SPIRAL.”Source: Source: Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

26. The Commerce/Metro Bank Model“Are you going to costcut your way to prosperity?Or …Are you going to spend your way to prosperity?”Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

27. The Commerce/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

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

29. 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 (speciality 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)

30. 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.

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. “May I clean your glasses, sir?” “May I help you down the jetway, ma’am.”

37. “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

38. TGRs+L(V)BTs(Little VERY Big Things)

39. Big carts = 1.5X Source: Walmart

40. 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

41. 10 August 2011!

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

43. “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

44. “He said for him the craft of building a boat was like a religion. It wasn’t enough to master the technical details of it. You had to give yourself up to it spiritually; you had to surrender yourself absolutely to it. When you were done and walked away, you had to feel that you had left a piece of yourself behind in you forever, a bit of your heart.” —On the world’s premier racing shell builder, George Yeoman Pocock, in Daniel Brown, THE BOYS IN THE BOAT: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics

45. Hypothesis: Men cannot design for women’s needs!!??

46. Women BUY(Everything)!

47. W > 2X (C + I) = $28 TRILLION “Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN.” Source: Headline, Economist

48. “Women areTHEmajority market”—Fara Warner/The Power of the Purse

49. W > 2X (C + I)* • *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 TRILLION in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. • And yet many companies do just that—even ones that are confidant that they have a winning strategy when • it comes to women. Consider Dell’s …” • Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR

50. “The MOST SIGNIFICANT VARIABLEinEVERYsales situation is theGENDER of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.”—Jeffery Tobias Halter, Selling to Men, Selling to Women