First Things BEFORE First Things

1. 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 …

2. First Things BEFORE First Things

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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. “EXECUTION ISSTRATEGY.”—Fred Malek

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8. READY.FIRE!AIM.H. Ross Perot (vs “Aim! Aim! Aim!”/EDS vs GM/1985)

9. “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version#5.By the time our rivals are ready with wires and screws, we are on version #10.It gets back to planning versus acting: We act from day one; others plan how to plan—for months.”—Bloomberg by Bloomberg

10. “EXPERIMENT FEARLESSLY”Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1“RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10)

11. Leader:“Metabolic Management”

12. Excellence82: 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

13. Lesson47: WTTMSW

14. WHOEVER TRIES THE MOST STUFF WINS

15. LONG Tom Peters’ EXCELLENCE! Medtronic EMEAC FY-15 Annual Kickoff Meeting/Frankfurt/03 June 2014 (Slides++ at tompeters.com; also see our 23-part Master Compendium at excellencenow.com)

16. 1/721: “The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett

17. “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

18. 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!]

19. “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, 11.2013

20. “Internet of Things”:“The algorithms created by Nest’s machine-learning experts—and the troves of data generated by those algorithms—are just as important as the sleek materials carefully selected by its industrial designers. By tracking its users and subtly influencing their behaviors, Nest Learning Thermostat transcends its pedestrian product category. Nest has similar hopes for what has always been a prosaic device, the smoke alarm. Yes, the Nest Protect does what every similar device does—goes off when smoke or CO reaches dangerous levels—but it does much more, by using sensors to distinguish between smoke and steam, Internet connectivity to tell you where the danger is, a calculated tone of voice to convey a personality, and warm lighting to guide you in the darkness. In other words, Nest isn’t only about beautifying the thermostat or adding features to the lowly smoke detector. ‘We’re about creating the conscious home,’ said Nest CEO Fadell. Left unsaid is a grander vision, with even bigger implications, many devices sensing the environment, talking to one another, and doing our bidding unprompted.” Source: “Where There’s Smoke …”, Steven Levy, Wired, NOV 2013

21. 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

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

23. “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?”—Fred Smith

24. “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.”

25. Walmart SV =1,500

26. 60 IS THE NEW 40!70 IS THE NEW 50!35 IS THE NEW 65?

27. Bon Chance …

28. “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

29. “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

30. “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

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

32. NOOPTION: Avoiding “Commodity Hell”: Service on Steroids

33. “You are headed for commodity hell if you don’t have services.”)

34. “While everything may be better, it is also increasingly the same.”Paul Goldberger, “The Sameness of Things,”The New York Times

35. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, coming up with similarideas, producing similar things, with similarprices and similarquality.”—Kjell Nordström and Jonas Ridderstråle, Funky Business

36. More @ Moore

37. “Lou, Your mission is to break the company up and release hidden value!”

38. “Lou, with all the money I’ve spent with you guys on ‘the best,’ this or that, this AND that, why in the hell hasn’t my business been transformed?”

39. IBMtoIBM

40. $50B+**IBM Global Services/“Systems integrator of choice”

41. Planetary Rainmaker-in-Chief!“[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—towardradically differentbusinessmodels.The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at$500billiona year—that technology companies have never been able to touch.”—Fortune

42. “You are headed for commodity hell if you don’t have services.”—Lou Gerstner, on IBM’s coming revolution (1997)

43. “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.” —Lou Gerstner, Who Says Elephants Can’t Dance

44. UPStoUPS

45. “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America”—Headline/BW“UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”—ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

46. “WHAT CAN BROWN DO FOR YOU?”“It’s all about solutions. We talk with customers about how to run better, stronger, cheaper supply chains. We have 1,000 engineers who work with customers …”—Bob Stoffel, UPS senior exec

47. “THE GIANT STALKING BIG OIL: How SchlumbergerIs Rewriting the Rules of the Energy Game.”:“IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008

48. IPM’s Chief:“We’ll do just about anything an oilfield owner would want, from drilling to production.”

49. “Rolls-Royce now earns more from tasks such as managing clients’ procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist

50. “We want to be the air traffic controllers of electrons.”—Bob Nardelli, then CEO, GE Power Systems (GE core business that has been making products such as transformers for decades and decades)