Tom Peters’ X25*Tom Peters’ X25*

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

IDDBA/Anaheim/03 June 2007IDDBA/Anaheim/03 June 2007

**In Search of ExcellenceIn Search of Excellence 1982-2007 1982-2007

Thank Thank youyou

AnnAnn!!!!!!

R.O.I.RR.O.I.R

Return On Return On Investment In Investment In RelationshipsRelationships

Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, on “the on “the mostmost imimpportantortant lessonlesson you’ve you’ve learned in you long and distinguished learned in you long and distinguished

career”: career”: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside inside

the bathtubthe bathtub””

DDaimler.aimler. And And DDumb. umb. Both Start Both Start with “with “dd.”.”

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

““Mr Zetsche, head of Mr Zetsche, head of Chrysler from 2000Chrysler from 2000

to 2005, to 2005,

denieddenied

he shouldhe should

take take anyany

responsibility for the U.S. responsibility for the U.S. carmaker’s troubles …”carmaker’s troubles …” ——

Financial TimesFinancial Times/05.29.07/05.29.07

$10,000,000/$10,000,000/DayDay

Slides* at …Slides* at …

tompeters.comtompeters.com

*Also *Also LONGLONG

IDDBAIDDBA2121

IDDBA21IDDBA21*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) *Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones who do what we do,” “insanely great,” “radically *Jerry Garcia … or bust (“only ones who do what we do,” “insanely great,” “radically thrilling,” “gaspworthy.” thrilling,” “gaspworthy.” *Think Wegmans. (Staff: #1; the Manager’s Handbook of Decencies; “Kindness is *Think Wegmans. (Staff: #1; the Manager’s Handbook of Decencies; “Kindness is free.”)free.”)*”Wow” is free, too.*”Wow” is free, too.*Hire nut cases (the “O for 800” rule holds for DDB)*Hire nut cases (the “O for 800” rule holds for DDB)*E Val U A Tion, 53 = 53.*E Val U A Tion, 53 = 53.*Cause. Space. Decency. *Cause. Space. Decency. *Hire Great People. Try a Lot of Stuff Accept No Less Than Excellence. Pursue Wow!*Hire Great People. Try a Lot of Stuff Accept No Less Than Excellence. Pursue Wow!*EXCELLENCE!*EXCELLENCE!*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on the way in! Bags*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on the way in! Bags that open!)that open!)*Customer partnership.*Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ *Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads, heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions, tableaus … *Experience???????? (Still waitin’ for memorable.) (Stories, suggestions, tableaus … what was the point beyond “modernize … Shaw’s Manchester VT)what was the point beyond “modernize … Shaw’s Manchester VT)*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses of *For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses of Im Ag Im Ag In A Tion Noooooooow!) In A Tion Noooooooow!) *Tommy Trillions & His Friends By The Millions!!!!!!!!!!!!!!*Tommy Trillions & His Friends By The Millions!!!!!!!!!!!!!!*Experiment!!!!!!!!!!!!!!!!!! (R.F.A.,S.A.V., Sam’s #1)*Experiment!!!!!!!!!!!!!!!!!! (R.F.A.,S.A.V., Sam’s #1)*NSPW (New Stuff Per Week.)*NSPW (New Stuff Per Week.)*Passion (My disappointment in store managers?????? Lookin’ for Mary Kay!)*Passion (My disappointment in store managers?????? Lookin’ for Mary Kay!)*You do understand … HER … right? (I presume >75% of DDB *You do understand … HER … right? (I presume >75% of DDB managers managers are Women?)are Women?)

**Planetree! Commerce! Cirque!Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones*Jerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”) gaspworthy.”) *Think/Obsess Wegmans! (Staff: #1;*Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)*Leaders serve. (Leader as host.)*Leaders serve. (Leader as host.)*”Wow” is free, too.*”Wow” is free, too.*Hire nut cases (the “O for 800” rule*Hire nut cases (the “O for 800” rule holds for DDB)holds for DDB)

PlanetreePlanetree:: A Radical Model for A Radical Model for

New New Healthcare/Healing/Healthcare/Healing/Wellness Wellness ExcellenceExcellence

The 9 Planetree Practices

1.1. The Importance of Human InteractionThe Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Healing Partnerships: The importance of Including Friends and Family Friends and Family4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Healing Environments: Architecture and Design Conducive to Health Conducive to Health

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Press Ganey Assoc: 139,380 former patients from 225 hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome

PSPS directldirectly related to y related to StaffStaff InteractionInteraction

PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their

questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a

positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobbythe lobby (7/week, 3-4hrs/day) ;

5 pianos5 pianos ;

volunteersvolunteers (120-140 hrs arts &

entertainment per month).

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Excellence.Excellence.Bank on it.Bank on it.(commerce (commerce

bank.)bank.)

The Commerce Bank ModelThe Commerce Bank Model

“cost cutting “cost cutting is a death is a death spiral.”spiral.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

The Commerce Bank ModelThe Commerce Bank Model

““overover-invest in -invest in our people, our people, overover--

invest in our invest in our facilities.”facilities.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

““every computer at commerce bank has a every computer at commerce bank has a

specialspecial redred keykey on it that says, ‘found on it that says, ‘found

something stupid that we are doing that something stupid that we are doing that interferes with our ability to service the interferes with our ability to service the

customer? Tell us about it, and if we agree, we customer? Tell us about it, and if we agree, we will give you $50.’”will give you $50.’”

Source: Source: Fans! Not customers. How Commerce Bank Created a Super-Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industrygrowth Business in a No-growth Industry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

Commerce Bank: From “Service” to “Experience”Commerce Bank: From “Service” to “Experience”

7X. 730A-7X. 730A-800P. 800P.

F12A.F12A.**

**’93-’03/10 yr annual return: CB: 29%; ’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

*Planetree! Commerce! Cirque!*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) **Jerry Garcia … or bust (“only onesJerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”)gaspworthy.”) *Think/Obsess Wegmans! (Staff: #1;*Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)*Leaders serve. (Leader as host.)*Leaders serve. (Leader as host.)*”Wow” is free, too.*”Wow” is free, too.*Hire nut cases (the “O for 800” rule*Hire nut cases (the “O for 800” rule holds for DDB)holds for DDB)

““Every time we come to a Every time we come to a comfort zone, we will find a comfort zone, we will find a

way out.” “No Cloning.” way out.” “No Cloning.” “‘Reinvent the brand’ with “‘Reinvent the brand’ with each new show.” “A typical each new show.” “A typical

day at the office for me day at the office for me

begins by asking,begins by asking, ‘‘What What is impossible that I is impossible that I

am going to do am going to do todaytoday?’”?’” —Daniel Lamarre, —Daniel Lamarre,

president,president, Cirque du SoleilCirque du Soleil

““In-sane-In-sane-ly-great”ly-great”

Radically Thrilling Language!

““Radically Radically Thrilling.”Thrilling.”

—BMW Z4 (ad)

LanguageLanguage

*Planetree! Commerce! Cirque!*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones*Jerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”) gaspworthy.”) **Think/Obsess Wegmans! (Staff: #1;Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)*Leaders serve. (Leader as host.)*Leaders serve. (Leader as host.)*”Wow” is free, too.*”Wow” is free, too.*Hire nut cases (the “O for 800” rule*Hire nut cases (the “O for 800” rule holds for DDB)holds for DDB)

#1/10#1/1000

“Best Companies to Work for”/2005

Leaders Understand:

Brand Brand = =

Talent.Talent.

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

*Planetree! Commerce! Cirque!*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones*Jerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”) gaspworthy.”) *Think/Obsess Wegmans! (Staff: #1;*Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)**Leaders serve. (Leader as host.)Leaders serve. (Leader as host.)*”Wow” is free, too.*”Wow” is free, too.*Hire nut cases (the “O for 800” rule*Hire nut cases (the “O for 800” rule holds for DDB)holds for DDB)

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —Anon.

*Planetree! Commerce! Cirque!*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones*Jerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”) gaspworthy.”) *Think/Obsess Wegmans! (Staff: #1;*Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)*Leaders serve. (Leader as host.)*Leaders serve. (Leader as host.)**“Wow” is free, too.“Wow” is free, too.*Hire nut cases (the “O for 800” rule*Hire nut cases (the “O for 800” rule holds for DDB)holds for DDB)

*Planetree! Commerce! Cirque!*Planetree! Commerce! Cirque! (Pianos! Dog biscuits!) (Pianos! Dog biscuits!) *Jerry Garcia … or bust (“only ones*Jerry Garcia … or bust (“only ones who do what we do,” “insanelywho do what we do,” “insanely great,” “radically thrilling,”great,” “radically thrilling,” “ “gaspworthy.”) gaspworthy.”) *Think/Obsess Wegmans! (Staff: #1;*Think/Obsess Wegmans! (Staff: #1; the the Manager’s Handbook ofManager’s Handbook of Decencies;Decencies; “Kindness is free.”) “Kindness is free.”)*Leaders serve. (Leader as host.)*Leaders serve. (Leader as host.)*“Wow” is free, too.*“Wow” is free, too.**Hire nut cases (the “O for 800”/100% Hire nut cases (the “O for 800”/100% rulerule holds for DDB)holds for DDB)

““Normal” Normal”

= = “o “o forfor 800”800”

**One size fits one. (53 = 53.)One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *”It.” (Hire Great People. Try a Lot of*”It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

Just Just scream scream “No”!“No”!

Promise #1:Promise #1: “Never, “Never, everever again will I evaluate again will I evaluate

anyoneanyone using a using a standardizedstandardized instrument instrument

devised bydevised by a “professional” in a “professional” in inhuman Resources.”inhuman Resources.”

53 = 53 = 5353

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)**Cause. Space. Decency. Cause. Space. Decency. *”It.” (Hire Great People. Try a Lot of*”It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

The Manager’s The Manager’s Book of Decencies: Book of Decencies:

How Small How Small gestures Build gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. **“It.” (Hire Great People. Try a Lot of“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

Hire Great PeopleHire Great People (Resilient, Passionate)(Resilient, Passionate)

Try a Lot of StuffTry a Lot of Stuff (S.A.V./R.F.A.)(S.A.V./R.F.A.)

aCCEPT NO LESS THAN aCCEPT NO LESS THAN EXCELLENCE/PURSUE EXCELLENCE/PURSUE Wow!Wow!

enjoy It While It Lastsenjoy It While It Lasts

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *“It.” (Hire Great People. Try a Lot of*“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)**EXCELLENCE!EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

The Peters PrinciThe Peters Principplesles:: Enthusiasm. Enthusiasm.

Emotion. Emotion. ExcellenceExcellence.. Energy. Excitement. Service. Energy. Excitement. Service.

Growth. Creativity. Growth. Creativity. Imagination. Vitality. Joy. Imagination. Vitality. Joy.

Surprise. Independence. Spirit. Surprise. Independence. Spirit. Community. Limitless human Community. Limitless human

potential. Diversity. potential. Diversity.

Profit.Profit. Innovation. Design. Innovation. Design. Quality. Entrepreneurialism. Quality. Entrepreneurialism.

Wow!Wow!

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *“It.” (Hire Great People. Try a Lot of*“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!**Excellence. Wherever. (Jim’s Group,Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

Basement Basement Systems Inc.Systems Inc.

Jim’s Jim’s GroupGroup

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *“It.” (Hire Great People. Try a Lot of*“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)**Think 7 11 @ Mt Vernon & Charles.Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

< CAPEX< CAPEX> People!> People!

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *“It.” (Hire Great People. Try a Lot of*“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)**Smile.Smile.*Think Whole Foods. (Sorry, but it’s*Think Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

*One size fits one. (53 = 53.)*One size fits one. (53 = 53.)*Cause. Space. Decency. *Cause. Space. Decency. *“It.” (Hire Great People. Try a Lot of*“It.” (Hire Great People. Try a Lot of Stuff Accept No Less ThanStuff Accept No Less Than Excellence. Pursue Wow!)Excellence. Pursue Wow!)*EXCELLENCE!*EXCELLENCE!*Excellence. Wherever. (Jim’s Group,*Excellence. Wherever. (Jim’s Group, Basement Systems Inc.)Basement Systems Inc.)*Think 7 11 @ Mt Vernon & Charles.*Think 7 11 @ Mt Vernon & Charles. (<Capex, > People)(<Capex, > People)*Smile.*Smile.**Think Whole Foods. (Sorry, but it’sThink Whole Foods. (Sorry, but it’s true.) (Experience! Flowers on thetrue.) (Experience! Flowers on the way in! Bags that open!)way in! Bags that open!)

FFLLOOWWEERRPPOOWWEERR

**Customer partnership.Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)*25*25*For Pete’s sake … “OBESITY WORSE THAN*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

*Customer partnership.*Customer partnership.**Design (Pooh, the “Deli look 2007”)Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)*25*25*For Pete’s sake … “OBESITY WORSE THAN*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

“With its carefully conceived mix of colors and textures, aromas and music,

StarbucksStarbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford

was to the Age of Mass Production—the touchstone success story, the

exemplar of … the aesthetic imperative. … ‘‘Every Every Starbucks store is carefully Starbucks store is carefully

designed to enhance the designed to enhance the quality of everything the quality of everything the

customers see, touch, hear, customers see, touch, hear, smell or tastesmell or taste,’,’ writes CEO Howard

Schultz.” -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

StarbucksStarbucksWhole FoodsWhole FoodsCommerceCommerce

*Customer partnership.*Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)**Communispace. (Got a clue as to what’s inCommunispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)*25*25*For Pete’s sake … “OBESITY WORSE THAN*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

Focus Groups:Focus Groups: No!No!Continuing Continuing

Conversations:Conversations: Yes!Yes!

*Customer partnership.*Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)**Experience???????? (Still waitin’ forExperience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)*25*25*For Pete’s sake … “OBESITY WORSE THAN*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘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 “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

*Customer partnership.*Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)

**2525*For Pete’s sake … “OBESITY WORSE THAN*For Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

*Customer partnership.*Customer partnership.*Design (Pooh, the “Deli look 2007”)*Design (Pooh, the “Deli look 2007”)*Communispace. (Got a clue as to what’s in*Communispace. (Got a clue as to what’s in your … STORE LEVEL … customers’ heads,your … STORE LEVEL … customers’ heads, the case of the Remote Control)the case of the Remote Control)*Experience???????? (Still waitin’ for*Experience???????? (Still waitin’ for memorable.) (Stories, suggestions,memorable.) (Stories, suggestions, tableaus … what was the point beyondtableaus … what was the point beyond “ “modernize … Shaw’s Manchester VT)modernize … Shaw’s Manchester VT)*25*25**For Pete’s sake … “OBESITY WORSE THANFor Pete’s sake … “OBESITY WORSE THAN TERRORISM” (Lea Der Ship! Wild doses ofTERRORISM” (Lea Der Ship! Wild doses of Im Ag In A Tion Noooooooow!) Im Ag In A Tion Noooooooow!)

Childhood Childhood Obesity Obesity >> TerrorismTerrorism

**

**Tommy Trillions & His Friends ByTommy Trillions & His Friends By The Millions!The Millions!*Experiment! TRY IT! (R.F.A., S.A.V., *Experiment! TRY IT! (R.F.A., S.A.V., Sam’s #1)Sam’s #1)*NSPW (New Stuff Per Week.)*NSPW (New Stuff Per Week.)*You do understand … HER … right? *You do understand … HER … right? (I presume >75% of DDB (I presume >75% of DDB managersmanagers are Women?)are Women?)*Passion (My disappointment in *Passion (My disappointment in store managers?????? Lookin’ forstore managers?????? Lookin’ for Mary Kay!)Mary Kay!)

2020

$14,000,000,000,000$14,000,000,000,000--

$25,000,000,000,000 $25,000,000,000,000

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western Western

EuropeansEuropeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, the , the biggestbiggest, the , the

wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most experimental & experimental &

exploratoryexploratory, the most , the most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult &

demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,

(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most

profoundly important commercial market profoundly important commercial market in the history of the world—and we will be in the history of the world—and we will be the Center of your universe for the next the Center of your universe for the next

twenty-fivetwenty-five yearsyears. We have arrived!. We have arrived!

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

**

*Tommy Trillions & His Friends By*Tommy Trillions & His Friends By The Millions!The Millions!**Experiment! TRY IT! (R.F.A., S.A.V., Experiment! TRY IT! (R.F.A., S.A.V., Sam’s #1)Sam’s #1)*NSPW (New Stuff Per Week.)*NSPW (New Stuff Per Week.)*You do understand … HER … right? *You do understand … HER … right? (I presume >75% of DDB (I presume >75% of DDB managersmanagers are Women?)are Women?)*Passion (My disappointment in *Passion (My disappointment in store managers?????? Lookin’ forstore managers?????? Lookin’ for Mary Kay!)Mary Kay!)

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. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. it. Try it.Try it. Try it. Try it. Try it. Try it. Try it.Try it. Screw it up.Screw it up. it. it. Try it. Try it. Try it.Try it. try it. try it.

Try it.Try it. Screw it up.Screw it up. Try Try it. Try it. Try it.it. Try it. Try it.

do do things.things.

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

drill.drill.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill 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

Screw. Screw. things.things.

Up.Up.

Sam’s Sam’s Secret Secret

#1!#1!

**

*Tommy Trillions & His Friends By*Tommy Trillions & His Friends By The Millions!The Millions!*Experiment! (R.F.A., S.A.V., *Experiment! (R.F.A., S.A.V., Sam’s #1)Sam’s #1)**NSPW (New Stuff Per Week.)NSPW (New Stuff Per Week.)*You do understand … HER … right? *You do understand … HER … right? (I presume >75% of DDB (I presume >75% of DDB managersmanagers are Women?)are Women?)*Passion (My disappointment in *Passion (My disappointment in store managers?????? Lookin’ forstore managers?????? Lookin’ for Mary Kay!)Mary Kay!)

**

*Tommy Trillions & His Friends By*Tommy Trillions & His Friends By The Millions!The Millions!*Experiment! (R.F.A., S.A.V., *Experiment! (R.F.A., S.A.V., Sam’s #1)Sam’s #1)*NSPW (New Stuff Per Week.)*NSPW (New Stuff Per Week.)**You do understand … HER … right? You do understand … HER … right? ((I presume >75%+ of DDB I presume >75%+ of DDB managersmanagers are Womenare Women?)?)*Passion (My disappointment in *Passion (My disappointment in store managers?????? Lookin’ forstore managers?????? Lookin’ for Mary Kay!)Mary Kay!)

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

**

*Tommy Trillions & His Friends By*Tommy Trillions & His Friends By The Millions!The Millions!*Experiment! (R.F.A., S.A.V., *Experiment! (R.F.A., S.A.V., Sam’s #1)Sam’s #1)*NSPW (New Stuff Per Week.)*NSPW (New Stuff Per Week.)*You do understand … HER … right? *You do understand … HER … right? (I presume >75% of DDB (I presume >75% of DDB managersmanagers are Women?)are Women?)**Passion (My disappointment in Passion (My disappointment in store managers?????? Lookin’ forstore managers?????? Lookin’ for Mary Kay!)Mary Kay!)

EXCELLENCE.EXCELLENCE. BEDROCK.BEDROCK.

LEADERSHIP.LEADERSHIP.Passion.Passion.“9 P“9 Pss.”.”

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

"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!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

Ger-Ger-onon-i--i-momo!!