excellence. always. american gem society/breaking barriers tom peters/28april2006/orlando

EXCELLENCE.

ALWAYS.American Gem Society/Breaking Barriers

Tom Peters/28April2006/Orlando

Slides at …

tompeters.com

EXCELLENCE.

MANHOLE COVER

MADNESS.

Chicagoland’s

Mystery Disappearances …

EXCELLENCE. THE

MANDATE.

“If you don’t like change,

you’re going to like irrelevance even less.” —General Eric

Shinseki, Chief of Staff. U. S. Army

“It is not the strongest of the

species that survives, nor the most intelligent, but the one most

responsive to change.” —Charles Darwin

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”

The World of In Search of Excellence:

People. Emotion. Engagement. Exuberance. Action-Execution. Empowerment. Independence. Initiative. Imagination. Great

Stories. Incredible Adventures. Trust. Caring. Fun. Joy.

Customer-centrism. Profit. Growth. “Brand You.” “Dramatic Differences.” Experiences that Make You “Gasp.” Excellence.

Always.

ExIn*: 1982-2002/Forbes.com

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

*Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE.

WANTING.

Radio City Music HallSeptember 2005

Franchise Lost!

TP: “How many of you [600] really

crave a new Chevy?”

NYC/IIR/061205

This is not a “mature

category.”

This is an “undistinguishe

d category.”

EXCELLENCE.

DOABLE.

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!!)

$798

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

Foods

EXCELLENCE!

ALWAYS!

$798

7X. 730A-800P.

F12A.**’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

“It’s simple, really, Tom. Hire for s,

and, above all, promote for s.”

—Starbucks middle manager/field

#1/100

“Best Companies to

Work for”/2005

Wegmans

EXCELLENCE.

#1T.

Donnelly’s Weatherstrip

Service

Weymouth MA

Cirque du Soleil!

EXCELLENCE.

OPPORTUNITY.

“Women are the

majority market”

—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.

10. Women’s Market =

Opportunity No. 1.

“Women don’t buy

brands. They join them.”

EVEolution

2.6 vs. 21

EXCELLENCE.

AARGH.

6/44

P&G

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.

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

“Baby-boomer Women: The Sweetest of

Sweet Spots for Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

EXCELLENCE.

OPPORTUNITY.

Fastest growing demographic:

Single-person Households (>50% in London, Stockholm, etc)

Source: Richard Scase

EXCELLENCE.

OPPORTUNITY.

Women.Women business owners.

Boomers-Geezers.Single-adults (Urban)

EXCELLENCE.

VALUE ADDED.

$55B

EXCELLENCE.

UP THE LADDER.

Huge: Customer Satisfaction versus

Customer

Success

The Value-added Ladder/Opportunity-seeking

Gamechanging Solutions

ServicesGoods

Raw Materials

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

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an

entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

“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

Warren Goes Shopping …

Q: “Why did you buy Jordan’s Furniture?”A: “Jordan’s is spectacular. It’s all showmanship.”

Source: Warren Buffet /interview/Boston Sunday Globe

EXCELLENCE.

UP THE LADDER.

The Value-added Ladder/Memorable Connection

Spellbinding Experiences

Gamechanging SolutionsServicesGoods

Raw Materials

CXO**Chief eXperience Officer

EXCELLENCE.

BONUS.

Flower Power!

EXCELLENCE.

DREAM IT.

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

EXCELLENCE.

UP THE LADDER.

The Value-added Ladder/Emotion

Dreams Come True

Spellbinding Experiences Gamechanging Solutions

ServicesGoods

Raw Materials

CDM*

*Chief Dream Merchant

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

= Dream Power

CSTO*

*Chief Storytelling Officer

EXCELLENCE.

ALWAYS.

. “Everyone lives by selling

something.”

– Robert Louis Stevenson

SellSellSell

CRO*

*Chief Revenue Officer

EXCELLENCE.

BEDROCK.

Brand =

Talent.

“We are a ‘Life

Success’ Company’

Dave Liniger, founder, RE/MAX

Health:Century21.Job # 1

Quality!Prevention!Wellness!

Chronic Care!

Childhood Obesity!H5N1!

Childhood Obesity > Terrorism

Source: Mike Levitt

EXCELLENCE.

BEDROCK.

“You must

be the

change you wish to see in the

world.”Gandhi

25

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

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make Big Changes

to Big Things.”

—Roger Enrico, former Chairman, PepsiCo

“Reward excellent failures.

Punish mediocre

successes.”Phil Daniels, Sydney exec

EXCELLENCE.

WOW.

Synonyms

PurityTranscendence

VirtueEleganceMajesty

Antonyms

Mediocrity

Radically Thrilling Language!

“Radically Thrilling.”

—BMW Z4 (ad)

CWO*

*Chief WOW Officer

EXCELLENCE. WOW. NOW.

“It’s always

showtime.”

—David D’Alessandro, Career Warfare

EXCELLE ALWAYS.