Evolving Excellence: Embracing Change and Innovation for Sustainable Growth

1. New Zealand 2007

2. Ho hum: 2+ weeks in New Zealand …PfizerFordGapChryslerYahoomicrosoftwal*mart??????

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

4. Punchline …

5. The last word: There is no “last word.”

6. Tom Peters’ X25*EXCELLENCE. ALWAYS.MilSOFT/Ankara/07 May 2007*In Search of Excellence 1982-2007

7. Slides* at …tompeters.com*Also see LONG

8. EXCELL-ENCE????

9. “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 large one and just wait.”—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

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 tokill an organizationthan change it substantially.”—Kevin Kelly, Out of Control

12. EXCELLENCE. CIRCA 1982.

13. 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”

14. ExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields$85,000EI: $10,000 yields$140,050*Forbes/Excellence Index/Basket of 32 publicly traded stocks

15. EXCELLENCE. ASPIRATION.

16. Why in the World did you go to Siberia?

17. The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow!

18. Enterprise* ** (*at its best):An emotional, vital, innovative, joyful,creative,entrepreneurial endeavor that elicits maximum concerted human potential in the wholeheartedservice of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners

19. EXCELLENCE. ASPIRATION.UNIVERSAL.

20. Jim’s Group

21. Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

22. Basement Systems Inc.

23. *Basement Systems Inc.*Larry Janesky*Dry Basement Science(115,000!)*1993: $0; 2003: $12M; 2006: $50,000,000+

24. EXCELLENCE. REVENUE.MATTERS.MOST. “TOP LINE TOM.”

25. “Make sure your top team includes top talent in design, engineering and manufacturing, because that’s your only priority— to build cars people want to buy. Hot styling sells them and quality keeps them sold.”—Lee Iacocca, Where Have All the Leaders Gone?

26. “Analysts … preferred cost cutting,as long as they could see two or three years of EPS growth. I preached revenue and the analysts’ eyes would glaze over. Now revenue is ‘in’ because so many got caught, and earnings went to hell.They said, ‘Oh my gosh, you need revenues to grow earnings over time.’ Well, Duh!”—Dick Kovacevich, Wells Fargo

27. CR O**Chief Revenue Officer

28. WE ARE ALL IN SALES.

29. EXCELLENCE. INNOVATE. OR. DIE.

30. EXCELLENCE. INNOVATION.THE REAL STORY.Tom Peters/03.29.2007

31. The Mess IsThe Message! Period!

32. What makes God laugh?

33. Peoplemakingplans!

34. “Recently I asked three corporate executives what decisions they had made in the last year that would not have been made were it not for their corporate plans. All had difficulty identifying one such decision. Since all of the plans are marked ‘secret’ or ‘confidential,’I asked them how their competitors might benefit from possession of their plans. Each answered with embarrassment that their competitors would not benefit.”—Russell Ackoff (from Henry Mintzberg, The Rise and Fall of Strategic Planning)

35. The Mess Is the Message! Period!An Economic Interpretation of the Constitution of the United States —Charles Beard (1913)The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger —Marc LevinsonTube: The Invention of Television—David & Marshall FisherEmpires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World—Jill JonnesThe Soul of a New Machine—Tracy KidderRosalind Franklin: The Dark Lady of DNA—Brenda MaddoxThe Blitzkrieg Myth—John Mosier

36. First-level Scientific Success:Beyond Brains

37. First-level Scientific SuccessThe smartest guy in the room wins”Or …

38. First-level Scientific SuccessFanaticismPersistence-Dogged TenacityPatience (long haul/decades)-Impatience (in a hurry/”do it yesterday”)PassionEnergyRelentlessness (Grant-ian) EnthusiasmDriven (nuts!) (Brutal?) CompetitivenessEntrepreneurialPragmatic (R.F!A.)Scrounge (“gets” the logistics-infrastructure bit)Master of Politics (internal-external)Tactical GeniusPursuit of (Oceanic) Excellence!High EQ/Skillful in Attracting + Keeping Talent/MagneticProlific (“ground up more pig brains”)EgocentricSense of History-DestinyFuturistic-In the MomentMono-dimensional (“Work-life balance”? Ha!)Exceptionally IntelligentExceptionally Clever (methodological shortcuts/methodological genius)Luck

39. EXCELLENCE. INNOVATE. OR. DIE.

40. More than $$$$#1R&D spending, last 25 years?

41. GM

42. BIG???

43. Dick Kovacevich:You don’t get better by being bigger. You get worse.”

44. “Despite a decade of banking mergers, there is no evidence that big banks are any more efficient or profitable than their smaller rivals.”—Financial Times, 0329, on possible Barclays-ABN Amro merger (“When it comes to asking the stock market whether bigger banks are better, the current answer is a resounding ‘no.” —Citigroup analysis, 2006)

45. “Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger.Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.”—Jim Collins/Time/2004

46. Spinoffs systematically perform better than IPOs … track record, profits … “freed from the confines of the parent … more entrepreneurial, more nimble”—Jerry Knight/ Washington Post/ 08.05

47. There’s“A”and then there’s“A.”

48. InnoTacs

49. We become who we associate with 1

50. Measure “Strangeness”/Portfolio QualityStaffConsultantsVendorsOut-sourcing Partners (#, Quality)Innovation Alliance PartnersCustomersCompetitors (who we “benchmark” against)Strategic Initiatives Product Portfolio (LineEx v. Leap)IS/IT ProjectsHQ LocationLunch MatesLanguageBoard