1 RE-IMAGINE! EXCELLENCE/2017 Washington Federal CEO Forum Tom Peters’09 December 2016 (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 23-part Monster-Master at excellencenow.com) 1 1

2 IT’S THE ONLY MARKET THAT’S NOT CROWDEDBE THE BEST: IT’S THE ONLY MARKET THAT’S NOT CROWDED 2 2

3 AND THE WINNERS AREN’T/ARE3 3

4 “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 “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that NONE of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times 4 4

5 AND THE WINNERS AREN’T/ARE5 5

6 Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin6 6

7 and 1,400 varieties of hot sauce—not to mention 12,000 wines pricedJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHIO: “An adventure in ‘shoppertainment’ [shopping + entertainment] begins in the parking lot and goes on to 1,600 cheeses and 1,400 varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 /bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” Award: “AMERICA’S BEST RESTROOM.” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

8 MITTELSTAND* *“agile creatures darting betweenthe legs of the multinational monsters” (Bloomberg BusinessWeek) 8

9 Hidden Champions* of the 21st Century: Success Secrets of Unknown World Market Leaders/ Hermann Simon (*1, 2, or 3 in world market; <$4B; low public awareness) Baader (Iceland/80% fish-processing systems) Gallagher (NZ/electric fences) W.E.T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (specialty adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O.C. Tanner (employee recognition/$400M) Hoeganaes (powder metallurgy supplies)

10 They manage for VALUE—not for EPS. Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think*: 1. BETTER before cheaper. 2. REVENUE before cost. 3. There are no other rules. (*FIVE-YEAR PROJECT: From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional”—then a final 27) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for VALUE—not for EPS. They get radically CUSTOMER-CENTRIC. They keep DEVELOPING HUMAN CAPITAL.

11 “Are you going to COST CUT *Including 2,000,000+ dog biscuits/yearThe Metro Bank Model “Are you going to COST CUT your way to prosperity?” (“Cost-cutting is a death spiral.”) Or … “Are you going to SPEND* your way to prosperity?” ((“Our whole story is growing revenue.”) Source: Vernon Hill, Fans! Not Customers. How to Create Growth Companies in a No Growth World *Including 2,000,000+ dog biscuits/year

12 if he is learning new tricks all the time if he has a good disposition The local plumber or electrician does not provide a “commodity service” … if he knows his job if he is learning new tricks all the time if he has a good disposition if he shows up on time if he is neatly dressed if he has s spiffy truck if he cleans up so that the Client could “eat off the floor” after he leaves if he volunteers to do a few tiny tasks outside the one at hand—gratis If he has glowing referrals from prior Clients by the bucketload If he has a high-utility Web site and maybe even goes so far as to create a blog with occasional posts featuring practical tips for his clientele—e.g., a tiny Virginia swimming pool company became a literal worldbeater adopting this social-media strategy

13 Going “Social”: Location and Size Independent“Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say, ‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

14 “BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.”**From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

15 SEVEN VALUE-ADDED STRATEGIES15 15

16 D-Day: 10 August 2011!

17 Design RULES! APPLE market cap > Exxon Mobil* *10 August 201117 17

18 DESIGN IS THE FUNDAMENTAL SOUL OF A MAN-MADE CREATION.” —Steve Jobs “He said for him the craft of building a boat was like a religion. It wasn’t enough to master the technical details of it. You had to give yourself up to it spiritually; you had to surrender yourself absolutely to it. When you were done and walked away, you had to feel that you had left a piece of yourself behind in you forever, a bit of your heart.” —On the world’s premier racing shell builder, George Yeoman Pocock, in Daniel Brown, THE BOYS IN THE BOAT: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics

19 Hypothesis: Men cannot design for women’s needs!!??

20 Women Buy [Everything]20

21 Women Buy [Everything] !21

22 Source: Headline, EconomistW > 2X (C + I) = $28 TRILLION “Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN.” Source: Headline, Economist 22 22

23 Women as Decision Makers/Various sources Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (influence 90%) All consumer purchases … 83% * Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% *In the USA women hold >50% managerial positions including >50% purchasing officer positions; hence women also make the majority of commercial purchasing decisions. 23

24 “Women are THE majority market” —Fara Warner/The Power of the Purse What needs to change to take advantage of this? EVERYTHING: Product design, distribution, marketing, culture (Take the … “squint test.” ) 24 24

25 We [old folks] Have [all] the $$$$$$

26 We [old folks] Have [all]] the $$$$$$

27 109M > 50: 1 BOOMER turns AGE 65 every 8 SECONDSfor the next 20 YEARS “PEOPLE TURNING 50 TODAY HAVE MORE THAN HALF OF THEIR ADULT LIFE AHEAD OF THEM.”* Source; Bill Novelli, 50+: IGNITING A REVOLUTION TO REINVENT AMERICA (*The >50 7/13 Rule.) 27

28 “In 2009, households headed by adults ages 65 and older“In 2009, households headed by adults ages 65 and older ... had 47 times as much net wealth as the typical household headed by someone under 35 years of age. In 1984, this had been a less lopsided 10-to-1 ratio.” Source: Pew Research/10.11 28

29 >50: 50% spending/10% marketing budgets : “NEW CUSTOMER MAJORITY” Source: Ageless Marketing, David Wolfe & Robert Snyder 29 29

30 Value-Added on Steroids: The [ENORMOUS] [UBIQUITOUS] “Services Added” Opportunity

31 “Rolls-Royce now earns MORE from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist

32 UPS to UPS: UPS = United Problem Solvers* ***Service Mark **Parcels to Services/Turnkey supply-chain management

33 Distributor/“Middleman” to Systems Maestros* Systemic value-added strategists for total Client operations Integrated Systems Operators/Managers Systemic productivity and technology improvement strategy and management Systemic quality management Client employee training High value-added subcontractors/Full-scale partners for a myriad of Client needs—i.e., a de facto General Store, ready to do any damn thing the Client would like to have done And/or: WE’LL HELP YOU TAKE OUT THE GARBAGE IF YOU WISH! *Requisite: MEGA-Culture Change/ Professional Service Firm “model”

34 Social Business/ Customer Engagement/Customer Control/

35 “IT TAKES 20 YEARS TO BUILD A REPUTATION AND 5 MINUTES TO RUIN IT.”Welcome to the Age of Social Media “The customer is in complete control of communication.” “What used to be “word of mouth” is now “word of mouse.” You are either creating brand ambassadors or brand terrorists doing brand assassination.” “IT TAKES 20 YEARS TO BUILD A REPUTATION AND 5 MINUTES TO RUIN IT.” Source: John DiJulius, The Customer Service Revolution

36 DO YOU TWEET? “I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial. Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard. “[I]f we engage employees, customers, and prospective Customers n meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time —help them become advocates and champions for the brand.” —Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social, by Ted Coine & Mark Babbit) (FYI: Also see Peter Aceto’s book Weology.)

37 [BIG] Data = [BIG] $$$!

38 “Caesars’ Entertainment have bet their future on harvesting personal data rather than developing the fanciest properties.” —Adam Tanner, What Stays in Vegas: The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know it

39 Internet of EverythingIoT/ IoE Internet of Things Internet of Everything 39

40 2016: GE goes to Boston!

41 2025: 100,000,000,000,000 41

42 THREE INNOVATION STRATEGIES42 42

43 INNOVATION I/Lesson50: WTTMSW43 43

44 WHOEVER TRIES THE MOST STUFF WINS 44

45 READY. FIRE! AIM. H. Ross Perot (vs “Aim! Aim! Aim!”/EDS vs GM/1985)45 45

46 THAT DON’T EMBRACE FAILURE — eventually get in“What really matters is that companies that don’t continue to experiment— COMPANIES THAT DON’T EMBRACE FAILURE — eventually get in a desperate position, where the only thing they can do is make a ‘Hail Mary’ bet at the end.” —Jeff Bezos

47 WTTMSASTMSUTFW 47

48 WHOEVER TRIES THE MOST STUFF AND SCREWS UP FASTEST WINS 48

49 REQUISITE: A “TRY IT” “CULTURE” “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play SORRY … I LOVE THIS. “SERIOUS PLAY” … OR … FUHGEDDABOUDIT!!!!!!!!!!!!!!!! No bull: I’m 57 … and I believe that this is … THE Truth. NO SHIT. 49

50 = $$$$$$$$ Major Innovations Cost Major $$. NOT. Big(ger) carts = 1.5XSource: Walmart 50

51 “The difference between BACH and his forgotten peers isn’t necessarily that he had a better ratio of hits to misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more than a thousand full-fledged musical compositions. A genius is a genius, psychologist Paul Simonton maintains, because he can put together such a staggering number of insights, ideas, theories, random observations, and unexpected connections that he almost inevitably ends up with something great. ‘Quality,’ Simonton writes, ‘is a probabilistic function of quantity.’” —Malcolm Gladwell, “Creation Myth,” New Yorker 51

52 “EXPERIMENT FEARLESSLY” Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—TACTIC #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions 52 52

53 We Are What We Eat. We Are Who We Spend Time With.

54 be either a blessing or a curse.” —Billy Cox“You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox 54

55 The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc., etc.) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” 55 55

56 “The Bottleneck is at the … “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma … Top of the Bottle” — Gary Hamel/Harvard Business Review 56

57 **ONE OR TWO ENTREPRENEURS—AND PERHAPS A VC. 10-Person BOARD OF DIRECTORS/Fit for the 2017 **AT LEAST TWO MEMBERS UNDER AGE 30. (Youth must be served/guide us at-the-top circa 2017—this is rare!!) **AT LEAST THREE WOMEN. (Boards with F-M balance lead to very high relative performance.) **ONE IT/DATA ANALYTICS/SOCIAL MEDIA SUPERSTAR. (Not an “IT representative,” but a Certified “Waterwalker” from, say, Google.) **ONE OR TWO ENTREPRENEURS—AND PERHAPS A VC. (The entrepreneurial bent must directly infiltrate the board.) **ONE PERSON OF STATURE WITH A “WEIRD” BACKGROUND—ARTIST, MUSICIAN, SHAMAN, ETC. (We need regular uncomfortable oddball challenges.) **A CERTIFIED “DESIGN GURU.” (Design presence at Board level is simply a must in my scheme of things.) **NO MORE THAN ONE-TWO OVER 60. (Too many Oldie Boards! Stop. NOW.) **NO MORE THAN THREE WITH MBAs. (Why? The necessity of moving beyond the emphases of the MBA-standard-predictable-linear-analytic-certified-vanilla model.) (Partial inspiration for this: Cybernetics pioneer W. ROSS ASHBY’S “LAW OF REQUISITE VARIETY.” The diversity of the Board should more or less match [be consistent with] the diversity [madness/2017] of the context/environment.)

58 “Skunk Works” (Authorized Renegades)

59 “Skunk Works”/ Lockheed/ SR-71/125 vs. 5,000 Skunkworks Inc./TJP 1% “Play Money”/ Starbucks InnoGrants/Amex, Marriott *“Skunkworks” (my preference) or “Skunk Works” (Lockheed)

60 PEOPLE [R-E-A-L-L-Y] FIRST60 60

61 Putting People [REALLY] First61 61

62 “PEOPLE BEFORE STRATEGY” —title, Harvard Business Review July 2015, by McKinsey MD Dominic Barton et al. “YOU HAVE TO TREAT YOUR EMPLOYEES LIKE CUSTOMERS.” —Herb Kelleher “What employees experience, Customers will. The best marketing is happy, engaged employees. YOUR CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR EMPLOYEES.” —John DiJulius, The Customer Service Revolution: 62 62

63 Rocket Science. NOT. “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s Source: Small Giants: Companies That Choose to Be Great Instead of Big, Bo Burlingham

64 If you want to WOW your customers, FIRST youEXCELLENT customer experience depends … entirely … on EXCELLENT employee experience! If you want to WOW your customers, FIRST you must WOW those who WOW the customers!

65 7/12 (!) /Twelve companies have been among the “100 best to work for” in the USA every year, for all 18 years of the list’s existence; along the way, they’ve added 341,567 new jobs, or job growth of +172%: Publix Whole Foods Wegmans Nordstrom Cisco Systems Marriott REI Goldman Sachs Four Seasons SAS Institute W.L. Gore TDIndustries Source: Fortune/ “The 100 Best Companies to Work For”/

66 by Peter Shankman with Karen Kelly Profit Through Putting People First Business Book Club Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, by Peter Shankman with Karen Kelly Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives, by Kip Tindell, CEO Container Store Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey, CEO Whole Foods, and Raj Sisodia Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, by Raj Sisodia, Jag Sheth, and David Wolfe The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, by Zeynep Ton, MIT Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, CEO Menlo Innovations Employees First, Customers Second: Turning Conventional Management Upside Down, by Vineet Nayar, CEO, HCL Technologies Patients Come Second: Leading Change By Changing the Way You Lead by Paul Spiegelman & Britt Berrett The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, by Hal Rosenbluth, former CEO, Rosenbluth International It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, by Mike Abrashoff, former commander, USS Benfold Turn This Ship Around; How to Create Leadership at Every Level, by L. David Marquet, former commander, SSN Santa Fe Small Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlingham Hidden Champions: Success Strategies of Unknown World Market Leaders, by Hermann Simon Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke, former CEO, AES Corporation The Dream Manager, by Matthew Kelly The Soft Edge: Where Great Companies Find Lasting Success, by Rich Karlgaard, publisher, Forbes Delivering Happiness: A Path to Profits, by Tony Hsieh, Zappos Camellia: A Very Different Company Fans, Not Customers: How to Create Growth Companies in a No Growth World, by Vernon Hill Like a Virgin: Secrets They Won’t Teach You at Business School, by Richard Branson

67 Hiring 67 67

68 “We look for ... listening, caring, smiling, saying ‘Thank you,’ being warm.” — Colleen Barrett, former President, Southwest Airlines 68

69 “The ultimate filter we use[in the hiring process] is that we only hire nice people. … When we finish assessing skills, we do something called ‘running the gauntlet.’ We have them interact with 15 or 20 people, and everyone of them have what I call a ‘blackball vote,’ which means they can say if we should not hire that person. I believe in culture so strongly and that one bad apple can spoil the bunch. There are enough really talented people out there who are nice, you don’t really need to put up with people who act like jerks.” —Peter Miller, CEO OptiNose/pharmaceuticals

70 “It’s simple, really, Tom. Hire for s, and, above all, promote for s“It’s simple, really, Tom. Hire for s, and, above all, promote for s.” —Starbucks regional manager, on why so many smiles at Starbucks shops 70

71 “I can’t tell you how many times we passed up hotshots for guys we thought were better people … and watched our guys do a lot better than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams.” —Bo Schembechler & John Bacon, “Recruit for Character,” from the book Bo’s Lasting Lessons 71

72 Les Wexner: FROM FASHION TRENDS GURU TO JOY FROM PICKING/ DEVELOPING PEOPLE!* *Limited Brands founder Les Wexner queried on astounding (>>Welch) longterm growth & profitability: It happened, he said, because “I got as excited about developing people” as he had been about predicting fashion trends in his early years. 72

73 LISTENING. CARING. SMILING. SAYING “THANK YOU.” BEING WARM. NICE. “BETTER PEOPLE.”

74 —Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love“It may sound radical, unconventional, and bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team.” —Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love

75 Training = Investment #1!

76 In the Army, 3-star generals worry about trainingIn the Army, 3-star generals worry about training. In most businesses, it's a “ho-hum” mid-level staff function. 76

77 Bet #4: >> 8 of 10 CEOs, in 45-min “tour d’horizon” of their biz, would NOT mention training.

78 1st-Line Leaders (Capital Asset #1?)

79 If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a tragedy. IF HE LOST HIS SERGEANTS IT WOULD BE A CATASTROPHE. The Army and the Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness? 79

80 Women Rule! 80

81 For One [BIG] Thing … “McKinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was … % higher.” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes,

82 —Harvard Business Review/2014“Women are rated higher in fully 12 of the 16 competencies that go into outstanding leadership. And two of the traits where women outscored men to the highest degree — taking initiative and driving for results — have long been thought of as particularly male strengths.” —Harvard Business Review/2014

83 “Research [by McKinsey & Co“Research [by McKinsey & Co.] suggests that to succeed, start by promoting women.” —Nicholas Kristof, NYTimes

84 Women’s Negotiating StrengthsWomen’s Negotiating Strengths *Ability to put themselves in their counterparts’ 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” 84

85 with others?” Source/from the back cover: Selling Is a Woman’s Game:“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/from the back cover: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

86 Portrait of a Female Investor 1. Trade less than men do 2Portrait of a Female Investor 1. Trade less than men do 2. Exhibit less overconfidence—more likely to know what they don’t know 3. Shun risk more than male investors do 4. Less optimistic, more realistic than their male counterparts 5. Put in more time and effort researching possible investments—consider details and alternate points of view 6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching 7. Learn from their mistakes 8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles Source: Warren Buffett Invests Like a Girl: And Why You Should Too, Louann Lofton, Chapter 2, “The Science Behind the Girl” 86

87 THE MORAL IMPERATIVE: PEOPLE DEVELOPMENT87

88 “Almost half of U.S. jobs are at high risk of computerization over the next 20 years, according to Oxford academics Carl Benedikt Frey and Michael A. Osborne.” —Harriet Taylor/CNBC/9 March 2016

89 “The median worker is losing the race against the machine.” *—Erik Brynjolfsson and Andrew McAfee, Race AGAINST the Machine (*“Occupations intensive in tasks that can easily be computerized are usually in the middle class.”/MIT’s David Autor) “If you think being a ‘professional’ makes your job safe, think again.” —Robert Reich

90 CORPORATE MANDATE #1 2016: Your principal moral obligation as a leader is to develop the skillset, “soft” and “hard,” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities. The bonus: This is also the #1 mid- to long-term … profit maximization strategy! 90 90

91 1/4,096: excellencenow.com “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson 91 91

92 FOUR LEADERSHIP TACTICS92 92

93 (Managing By Wandering Around)MBWA 25 (Managing By Wandering Around) 93 93

94 “I’m always stopping by our stores— at least 25 a week“I’m always stopping by our stores— at least 25 a week. I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up as much as I can.” —Howard Schultz Source: Fortune, “Secrets of Greatness” 94

95 1 Mouth, 2 Ears

96 *Source: Jerome Groopman, How Doctors Think“The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think 96 96

97 … 18 seconds! 97 97

98 Suggested Core Value #1: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.” 98 98

99 is notetaking—he has hundreds of notebooks.)Part ONE: LISTEN* (pp11-116, of 364) *“The key to every one of our [eight] leadership attributes was the vital importance of a leader’s ability to listen.” (One of Branson’s personal keys to listening is notetaking—he has hundreds of notebooks.) Source: Richard Branson, The Virgin Way: How to Listen, Learn, Laugh, and Lead

100 pick the #1 failing of CEOs, it’s that …“If I had to pick the #1 failing of CEOs, it’s that …

101 “If I had to pick one failing of CEOs, it’s that … they don’t read enough.”

102 “I ‘DO’ PEOPLE” 102 102

103 Les Wexner: FROM FASHION TRENDS GURU TO JOY FROM PICKING/ DEVELOPING PEOPLE!* *Limited Brands founder Les Wexner queried on astounding (>>Welch) longterm growth & profitability: It happened, he said, because “I got as excited about developing people” as he had been about predicting fashion trends in his early years. 103

104 THE END GAME 104 104

105 CONRAD’S COMMANDMENT 105 105

106 CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career?” His answer … 106 106 106

107 “Remember to tuck the shower curtain inside the bathtub.”107 107

108 “Never miss a good chance to shut up.” —Will Rogers