Tom Peters’ EXCELLENCE . ALWAYS . ONO/Management Forum Madrid/30 November 2006

1. Tom Peters’EXCELLENCE. ALWAYS.ONO/Management ForumMadrid/30 November 2006

2. Slides* at …tompeters.com*also see LONG version

3. EXCELLENCE. ALL . YOU. NEED. TO. KNOW.

4. 25

5. EXCELLENCE.ANY MARKET. ANYWHERE.ANY TIME.

6. Jim’s Group

7. EX-CELL-ENCE. NOT .

8. “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

9. “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.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

10. Welcome to the “Club of Shattered Dreams”: Of Korea’s Top 100 companies in 1955, only7 were still on the list in 2004. The 1997 crisis “destroyed halfof Korea’s 30 largest conglomerates.”Source: “KET Issue Report,” Kim Jong Nyun (14.05.2005)

11. S&P Stability Ratings*19852006Low Risk 41% 13%Average Risk 24% 14%High Risk35% 73%*Likelihood of stable long-term earnings growthSource: Fortune (2 October 2006)

12. TP#1*:Netscape!*Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?)

13. EXCELLENCE. SIBERIA.

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

15. Raging Success = P-SQUARED. C. E-CUBED.

16. People.Product.Clients.Execution.Enthusiasm.Excellence.

17. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. HandsOn, Value-Driven 6. Stick to the Knitting 7. SimpleForm, LeanStaff 8. Simultaneous Loose-Tight Properties”

18. The older I get the less boring the “basics” become!

19. EXCELLENCE. INNOVATE. OR. DIE.

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

21. EXCELLENCE. INNOVATE. ALL. WRONG.

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

23. “When asked to name just 1 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.’”—Mark Sirower, The Synergy Trap

24. EXCELLENCE. INNOVATE. TACTICS.

25. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Try it. Try it. Try it.

26. “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells.You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter

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

28. “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 toplan—for months.”—Bloomberg by Bloomberg

29. tolerate [encourage?] failure

30. Sam’s Secret #1!

31. Speed/ Tempo/is-it-Telecom

32. “theFedEx Economy”—headline/New York Times/10.08.05

33. “Any3”:Anything/ Anywhere/ Anytime

34. Wal*Mart (!)& Katrina

35. Power Tools For Power Strategies

36. place big bets

37. “Beware of the tyranny of making SmallChanges to SmallThings. Rather, make BigChanges to BigThings.”—Roger Enrico, former Chairman, PepsiCo

38. “Rewardexcellent failures. Punishmediocre successes.”Phil Daniels, Sydney exec

39. measure

40. Innovation Index:How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher[out of 10] on a “Profound”/ “Amazing”/“Game- changer” Scale?

41. re-imagine the “value added” equation

42. Up,Up,Up, Upthe Value-added Ladder.

43. $55B

44. “Big Brown’s New Bag: UPSAims to Be theTraffic Managerfor Corporate America”—Headline/BW/2004

45. The [NEW] “Value-added Ladder”Gamechanging Solutions/ Implemented Customer culture change & successServices/TransactionsManufactured Goods/Things Extracted Raw Materials/Stuff

46. PSF

47. Up,Up,Up, Upthe Value-added Ladder.

48. “Experiencesare as distinct from services as services are from goods.”—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

49. Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

50. The [NEW] “Value-added Ladder”spellbindingExperiencesGamechanging SolutionsServicesGoods Raw Materials