Tom Peters’

EXCELLENCE. ALWAYS.

MassMutual/Leaders Conference 2006Washington/29July

Slides* at …

tompeters.com

*also “long”

The Irreducible209+/

Sales122

2255

EXCELLENCE. STARTERS.

Radio City Music HallSeptember 2005

Franchise Lost!

TP: “How many of you [600] really

crave a new Chevy?”

NYC/IIR/061205

2P.3E.

People.Product.

Execution.Enthusiasm.Excellence.

EXCELLENCE. THE WORD.

Synonyms

PurityTranscendence

VirtueEleganceMajesty

Antonyms

Mediocrity

EXCELLENCE.

GAMECHANGER.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties”

ExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050

*Forbes/Excellence Index /Basket of 32 publicly traded stocks

Them-UsTom Peters/0624.2006

“Them” “Us”

Strategy EXECUTIONPlanning ActionMarketing Selling/SalesMarkets CustomersCustomers ClientsMicro-segmentation Big Stuff (Women, Boomers)Cost minimization Revenue maximizationSynergy/“Efficiencies” Decentralization“Strategic supplier Pioneering supplierProcess ProjectEffectiveness ExcellenceMen WomenLeadership Management + LeadershipStandardization Exceptionalism (53 = 53)Big clients COOL clientsPrestigious Board INTERESTING Board

good words.Bad words.

Words that may NOT be used in my presence:

“Motivate”

“Market”

Words that may NOT be used in my presence:

“Motivate”

“In the end, management doesn’t

change culture. Management

invites

the workforce itself to change the culture.”

—Lou Gerstner

Words that may NOT be used in my presence:

“Market”

SellSellSell

Words that MAY be used in my presence: “Invite” (v. “Motivate”) … “Sell” (v. “Market”) … “People” (we’d like to serve) (v. “Market segment”) … “Client” (v.

“Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute” (v. “Plan”) … “Talent” (v. “Worker”) …

“Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) … “Wow Project” (v. “Task”) … “Rockin’ (profit-makin’)

PSF” (v. “Department”) … “Theater” (v. “Office”) … “Breathtaking Experience” (v. “Transaction” that “Exceeds

expectations”) … “Talent Fanatics Inc” (v. “HR”) … “Brand You adventure” (v “Career development”)

“Annual Report development session” … (v.

“Employee evaluation”) … “Woman” (v. “Man”) …

EXCELLENCE.

ALWAYS.

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

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.

Business* ** (*at its best): An emotional, vital, innovative, joyful,

creative, entrepreneurial endeavor that elicits

maximum concerted human potential in the

wholehearted service of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Business: The Ultimate Creative

Endeavor.

Business: The Ultimate Personal

Development-Growth

Experience.

Business: The Ultimate

Transcendent Service

Opportunity.

EXCELLENCE.

WANTING.

This is not a “mature

category.”

This is an “undistinguishe

d category.”

EXCELLENCE. DRAMATIC.

DIFFERENCE.DOABLE.

$798

$415/SqFt/Wal*Mart$798/SqFt/Whole

Foods

7X. 730A-800P.

F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%;

HD: 16%. Mkt Cap: 48% p.a.

EXCELLENCE.

#1T.

Cirque du Soleil!

EXCELLENCE.

#1T.

Donnelly’s Weatherstrip

Service

Weymouth MA

EXCELLENCE. NO EXCUSES.

Summary:

WallopWal*Mart16*

*Or: Why it’s so absurdly easy to beat a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16

*Niche-aimed. (Never, ever “all things for all people,” a “mini-Wal*Mart.)

*Never attack the monsters head on! (Instead steal niche business and lukewarm customers.)

*“Dramatically Different” (La Difference ... within our

community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)

*Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

*Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

What I’ve Learned about

“Small Business”

Tom Peters26June2006

Passion for PRODUCT.OBSESSION With Product.

LOVE The Product.Aim To Be “ONLY ONES WHO DO WHAT WE DO.”

Keep ADDIN’ Stuff.Invest “UNWISELY” in R&D.

Reside Permanently In The DISCOMFORT Zone.“Unhealthy” PARANOIA Is A Good Thing.

Add Clients That PUSH-PULL.SELL. SELL. SELL. SELL.

Go For Broke: CUSTOMER CONTACT PEOPLE.PERFECTION: Customer Contact People.

Hire for ATTITUDE.INVITE On An Adventure. GREAT CFO/Biz Guy-Gal. NASTY CFO/Biz Guy-Gal.

QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-Project Manager-I.P.M. (I.P.M. = Inspired Profit

Mechanic)

“A man without a smiling face

must not open a shop.” —Chinese Proverb

EXCELLENCE.

PITIFUL.

“Idiot” is too kind a

word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 85% of Unilever’s products

are purchased by … women.

“That’s a

VERY diverse team.”

—Patrick Cescau, CEO, Unilever* **

“That’s a

VERY sick man.”

—Tom Peters

EXCELLENCE.

FOUND.

“To be a leader in consumer

products, it’s critical to have

leaders who represent the population we

serve.” —Steve Reinemund/PepsiCo

EXCELLENCE.

OPPORTUNITY.

“Women are the

majority market”

—Fara Warner/The Power of the Purse

USA/F.Stats: Short ’n (Very) Sweet

>50% of stock ownership, $13T total wealth (2X in 15 years)

>$7T consumer & biz spending (>50% GDP; > Japan GDP); >80% consumer spdg (Consumer = 70% all spdg)

57% BA degrees (2002); = ed & social strata, no wage gap

60% Internet users; >50% primary users of electronic equipment

>50% biz trips

WimBiz: Employees > F500; 10M+: 33% all US Biz

Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal

60% work; 46M (divorced, widowed, never married)

Source: Fara Warner, The Power of the Purse

The Perfect Answer

Jill and Jack buy slacks in black…

1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.

6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

“Women don’t buy

brands. They join them.”

EVEolution

2.6 vs. 21

10. Women’s Market =

Opportunity No. 1.

Cases!McDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home Depot (“Do it [everything!] Herself”)

P&G (more than “house cleaner”)

DeBeers (“right-hand rings”/$4B)

AXA FinancialKodak (women = “emotional centers of the household”)

Nike (> jock endorsements; new def sports; majority consumer)

AvonBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/The Power of the Purse

Faith, Lys, Marti, Fara …

Targeting the New Professional Woman:

How to Market and Sell to Today’s 57 Million

Working Women.

—Gerry Myers

“Goldman Sachs in Tokyo has developed an index of 115

companies poised to benefit from women’s increased purchasing

power; over the past decade the value of shares in Goldman’s

basket has risen by 96%, against the Tokyo stockmarket’s rise of

13%.” —Economist, April 15

EXCELLENCE.

OPPORTUNITY.

10.6

EXCELLENCE.

OPPORTUNITY.

2000-2010 Stats

18-44: -1%

55+: +21%(55-64: +47% )

44-65: “New Customer Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

“The New Customer Majority is the only adult

market with realistic prospects for significant

sales growth in dozens of product lines for thousands of companies.” —David Wolfe & Robert Snyder,

Ageless Marketing

“Baby-boomer Women: The Sweetest of

Sweet Spots for Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

EXCELLENCE.

OPPORTUNITY.

Women.Women business owners.

Boomers-Geezers.Single-adults (Urban)

Fastest growing demographic:

Single-person Households (>50% in

London, Stockholm, etc)

Source: Richard Scase

% of homes purchased by single women: 1981, 10%;

2005, 20%

% of homes purchased by single men: 1981, 10%;

2005, 9%

Source: USA Today/02.15.06

EXCELLENCE.

VALUE ADDED.

$55B

EXCELLENCE.

EXPERIENCE IT.

“Experiences are as distinct

from services as services are from

goods.” —Joe Pine & Jim Gilmore, The Experience Economy:

Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on …

“We have identified a

‘third place.’ And I

really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers

come for refuge.”

Nancy Orsolini, District Manager

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

CXO**Chief eXperience Officer

EXCELLENCE.

DREAM IT.

Furniture vs. Dreams

“We do not sell ‘furniture’ at

Domain. We sell dreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George,

Domain Home Fashions

DREAM: “A dream is a complete moment in the life

of a client. Important experiences that tempt the client to commit substantial resources. The essence of

the desires of the consumer. The opportunity to help

clients become what they want to be.”

—Gian Luigi Longinotti-Buitoni

CDM*

*Chief Dream Merchant

EXCELLENCE.

LOVE IT.

Kevin Roberts:

Lovemarks!

CL O*

*Chief Lovemark Officer

EXCELLENCE. THE STORY.

“Storytelling

is the core of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Market Power = Story Power

CSTO*

*Chief Storytelling Officer

EXCELLENCE.

BEDROCK.

Brand =

Talent.

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or her absolute best.”

“The best thing a leader can do for a

Great Group is to allow its members to discover their

greatness.”

Leadership’s Mt Everest/Mt Excellence

“free to do his or her absolute best” …

“allow its members to discover their

greatness.”

“The role of the Director is to create a

space where the actor or actress can become more than they’ve ever been before, more than

they’ve dreamed of being.” —Robert Altman, Oscar

acceptance

CQO*

*Chief quest-meister

EXCELLENCE. WOMEN.

RULE.

“AS LEADERS, WOMEN

RULE: New Studies find that

female managers outshine their male counterparts in almost every measure”

Title, Special Report/BusinessWeek

Women’s Negotiating Strengths

*Ability to put themselves in their counterparties’ shoes*Comprehensive, attentive and detailed communication style*Empathy that facilitates trust-building*Curious and attentive listening*Less competitive attitude*Strong sense of fairness and ability to persuade*Proactive risk manager*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

Women

Dominate Economic Growth.

“Forget China, India and the

Internet: Economic Growth Is Driven

by Women.” —Headline, Economist,

April 15, 2006, Leader, page 14

Impact! Add It Up!

Primary markets/Everything (“Men

buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce participation rate (“bigger contributor to GDP

growth than technology, China, India”—Economist)

Higher wages (more seniority, promotions—even if not

to CEO; greater pay equity—even if not equal)

Business “decision makers” (more

seniority, promotions—even if not to CEO)

Women-owned businesses (answer to

the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

EXCELLENCE. WOMEN.

SELL.

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the

details? Who finds it easier to meet new people? Who asks more questions in a

conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who

has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch

with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

Health

Childhood Obesity > Terrorism

Bust fat

docs!

Wash your hands.Apply #50 sunscreen.

Banish trans fatBanish high fructose corn syrup.

Exercise “30-7.”Breathe.

Stockpile for H5N1.* (*not Tamiflu!)

Avoid hospitalization.Take charge of your health.

EXCELLENCE.

BEDROCK.

X.Step #1:Buy a Mirror!

“The First step in a ‘dramatic’

‘organizational change program’ is obvious—

dramatic personal change!” —RG

“Work on me

first.” —Kerry Patterson,

Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

“You must

be the

change you wish to see in the

world.”Gandhi

“It’s always showtime.”

—David D’Alessandro, Career Warfare

motivational stuff

“Do one thing every day that scares you.”

—Eleanor Roosevelt

Stop Doing

It!

“The one thing you need to know about sustained individual

success: Discover what you don’t like

doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know

Paul Arden, Whatever You Think Think the Opposite

“ARE YOU BEING REASONABLE? Most

people are reasonable; that’s why they only do

reasonably well.”

Source: Paul Arden, Whatever You Think Think the Opposite

BONUS

Stating the Obvious: THE PROBLEM IS

RARELY THE PROBLEM.

THE PROBLEM IS RARELY/NEVER THE

PROBLEM. THE RESPONSE TO THE

PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* **

*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!

OFTEN AS NOT/MORE OFTEN

THAN NOT THE UNDERLYING

PROBLEM IS NOT MUCH OF A PROBLEM.

PERCEPTION IS ALL THERE IS.

PERIOD.*

*From Whole Foods to IBM to the corner deli

Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE

CALL WOULD HAVE AVOIDED SETTING OFF

THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.

POWER WORDS!

“I’m sorry.”

Stating the Obvious: MORE POWER WORDS/IDEAS

Thank You!

Say it with …

FLOWERS

POWER IDEAS!

You must care.—General Melvin Zais

EXCELLENCE. EXECUTION.

“We have a ‘strategic plan.’ It’s

called doing things.” — Herb Kelleher

“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

You only find oil if

you drill wells.

Source: The Hunters, by John Masters, Canadian O & G wildcatter

6:15A.M.

????????

Work Hard > Work Smart

EXCELLENCE.

DETERMINATION.

BLOOD-Y-MIND-ED-

NESS

Bloodyminded: Unreasonably

stubborn

Source: The Random House Dictionary of the English Language

“This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless

horsemanship and his determination, but also it is the first known

example of a very important peculiarity of his character:

Grant had an extreme, almost phobic dislike of

turning back and retracing his steps. If he set out for somewhere, he would get

there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him

such a formidable general. Grant would always, always press on—

turning back was not an option for him.”

—Michael Korda, Ulysses Grant

“Whenever anything is being accomplished, I

have learned, it is being done by a monomaniac

with a mission.” —Peter Drucker

"The reasonable man adapts himself to the world. The

unreasonable one persists in trying to adapt the world to

himself. Therefore, all progress depends upon the unreasonable man.” —GB Shaw,

Man and Superman: The Revolutionists' Handbook.

“I’m looking for insane

commitment.”

—Twyla Tharp, The Creative Habit

“You want ‘checklists.’ I instead offer you a ‘guaranteed’

‘formula’: Passion.

Enthusiasm. Bloody-mindedness [as contrasted

with mere ‘determination’]. Relentlessness. A demonic need to make ‘it’

happen.” —TP

“A year from now you may wish

You had started today.”

—Karen Lamb

Geronimo!

“Life is not a journey to the grave with the

intention of arriving safely in a pretty and well-preserved body—but

rather a skid in broadside, thoroughly used up, totally worn out, and

loudly proclaiming, ‘Wow, what a ride!’ ” —anon.

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

EXCELLENCE.

STRETCH.

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Kevin Roberts’ Credo

1. Ready. Fire! Aim.2. If it ain’t broke ... Break it!3. Hire crazies.4. Ask dumb questions.5. Pursue failure.6. Lead, follow ... or get out of the way!7. Spread confusion.8. Ditch your office.9. Read odd stuff.

10. Avoid moderation!

EXCELLENCE.

THRILLS.

Radically Thrilling Language!

“Radically Thrilling.”

—BMW Z4 (ad)

CTO**Chief Thrills Officer

EXCELLENCE. WOW. NOW.

CWO**Chief WOW Officer

“It’s always

showtime.”

—David D’Alessandro, Career Warfare

EXCELLE ALWAYS.