The Challenge: To Create More Value in All Negotiations

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Tom Peters EXCELLENCE!
Foodservice Equipment Distributors
Association 31 March 2016/Tucson (Slides
available at tompeters.com)
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Conrad Hilton
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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
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Remember to tuck the shower curtain inside the
bathtub.
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EXECUTION IS STRATEGY.Fred Malek
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Software Is Eating the World
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Software is eating the world. Marc Andreessen
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Automation has become so sophisticated that on a
typical passenger flight, a human pilot holds the
controls for a grand total of 3 minutes.
Pilots have become, its not much of an
exaggeration to say, computer operators.
Source Nicholas Carr, The Great Forgetting,
The Atlantic, 11.13
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Michael Vassar/MetaMed founder is creating a
better information system and new class of people
to manage it. Almost all health care people get
is going to be donehopefullyby algorithms
within a decade or two. We used to rely on
doctors to be experts, and weve crowded them
into being something like factory workers, where
their job is to see one patient every 8 to 11
minutes and implement a by-the-book solution. Im
talking about creating a new expert
professionmedical quants, almost like hedgefund
managers, who could do the high-level analytical
work of directing all the information that flows
into the worlds hard drives. Doctors would now
be aided by Vassars new information experts who
would be aided by advanced artificial
intelligence.New York /0624.13
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Human level capability has not turned out to be
a special stopping point from an engineering
perspective. ... Source Illah Reza
Nourbakhsh, Professor of Robotics, Carnegie
Mellon, Robot Futures
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AlphaGo Beats Go Grandmaster This
technology is going to cut through the global
economy like a hot knife through butter.  It
learns fast and largely on its own.  It's widely
applicable.  It doesn't only master what it has
seen, it can innovate.  For example some of the
unheard of moves made by AlphaGo were considered
beautiful by the Grandmaster it beat.  
Limited AGI/Artificial General Intelligence
(deep learning in particular) will have the
ability to do nearly any job currently being
done by human beingsfrom lawyers to judges,
nurses to doctors, driving to constructionpotenti
ally at a grandmaster's level of capability.
 This makes it a buzzsaw. Very few peopleand
I mean very fewwill be able to stay ahead of the
limited AGI buzzsaw.  It learns so quickly, the
fate of people stranded in former factory towns
gutted by free trade is likely to be the fate
of the highest paid technorati.  They simply
don't have the capacity to learn fast enough or
be creative enough to stay ahead of it. John
Robb/Global Guerrillas/ 03/12/16
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IoT/Internet of Things IoE/The Internet of
Everything M2M/Machine-to-Machine Ubiquitous
computing Embedded computing Pervasive
computing Industrial Internet Etc.
Estimated 212 BILLION connected devices
by 2020IDC Estimated IoT market size, next
decade 14.4 trillion By 2025 IoT could be
applicable to 82 trillion of output or
approximately one half the global economyGE (GE
is literally betting its existence and the future
on the IoT, Bloomberg/03.2016) 100,000,000,000
,000 100 trillion sensors/2030 Michael Patrick
Lynch, The Internet of Us Primary source The
Big Switch, Capital Insights
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Sensor Pills Proteus Digital Health is one of
several pioneers in sensor-based health
technology. They make a silicon chip the size of
a grain of sand that is embedded into a safely
digested pill that is swallowed. When the chip
mixes with stomach acids, the processor is
powered by the bodys electricity and transmits
data to a patch worn on the skin. That patch, in
turn, transmits data via Bluetooth to a mobile
app, which then transmits the data to a central
database where a health technician can verify if
a patient has taken her or his medications.
Robert Scoble and Shel Israel, Age of Context
Mobile, Sensors, Data and the Future of Privacy
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China/Foxconn 1,000,000 robots/next 3
years Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
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Since 1996, manufacturing employment in China
itself has actually fallen by an estimated 25
percent. Thats over 30,000,000 fewer Chinese
workers in that sector, even while output soared
by 70 percent. Its not that American workers are
being replaced by Chinese workers. Its that both
American and Chinese workers are being made more
efficient replaced by automation. Erik
Brynjolfsson and Andrew McAfee, The Second
Machine Age Work, Progress, and Prosperity in a
Time of Brilliant Technologies
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20/5
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Welcome to the Age of Social Media It takes 20
years to build a reputation and 5 minutes to
ruin it. Also, the Internet and technology have
made customers more demanding., and they expect
information, answers, products, responses, and
resolutions sooner than ASAP. John
DiJulius, The Customer Service Revolution
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What used to be word of mouth is now word of
mouse. You are either creating brand ambassadors
or brand terrorists doing brand
assassination. John DiJulius, The Customer
Service Revolution Overthrow Conventional
Business, Inspire Employees, and Change the World
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Welcome to the Age of Social Media The customer
is in complete control of communication. John
DiJulius, The Customer Service Revolution
Overthrow Conventional Business, Inspire
Employees, and Change the World
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Were moving toward an age of nearly perfect
information. Review sites, shopping apps on
smartphones, an extended network of acquaintances
available through social media, and unprecedented
access to experts mean that consumers operate in
a radically different, socially interactive
information environment. Consumers tend to
make better decisions and become less susceptible
to context or framing manipulations. For
businesses, it means marketing is changing
forever. Itamar Simonson and Emanuel Rosen,
Absolute Value What Really Influences Customers
in the Age of (Nearly) Perfect
InformationGoogle ZMOT/84
(ZERO Moment Of Truth)
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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 valuablenot 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. If we engage employees,
customers, and prospective customers in
meaningful dialogue about their lives,
challenges, interests, and concerns, we can build
a community of trust, loyalty, andpossibly over
timehelp them become advocates and champions for
the brand. Peter Aceto, CEO, Tangerine (from
the Foreword to A World Gone Social How
Companies Must Adapt to Survive, by Ted Coine
Mark Babbit)
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Going Social Location/Size Independent River
Pools and Spas/5M/Warsaw VA Today, despite the
fact that were just a little swimming pool
company in Virginia, we have the most trafficked
swimming pool website in the world. Five years
ago, if youd 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.
(Mktg 250K-20K) Marcus Sheridan, in Jay
Baer, Youtility Why Smart Marketing Is About
Help, Not Hype
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Seymour CT/ Motueka NZ/ Warsaw VA/ Fairfield
OH/ Frankenmuth MI Rock!
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Larry Janesky/Seymour CT/ Basement Systems
Inc. Dry Basement Science / 27
patents 400 dealers/6 countries Awards gt1
00,000,000
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The Magicians of Motueka (PLUS)! W.A. Coppins
Ltd. (Coppins Sea Anchors/ PSA/para sea
anchors) Textiles, 1898 thrive on wicked
problems e.g., U.S. Navy STLVAST (Small To
Large Vehicle At Sea Transfer) custom fabric
from W. Wiggins Ltd./Wellington (specialty
nylon, Dyneema, from DSM/Netherlands)
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Retail Superstars Inside the 25 Best Independent
Stores in America by George Whalin
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JUNGLE JIMS INTERNATIONAL MARKET, FAIRFIELD,
OH An adventure in shoppertainment, begins
in the parking lot and goes on to 1,600
cheeses and 1,400 varieties of hot saucenot to
mention 12,000 wines priced from 8-8,000 a
bottle all this is brought to you by 4,000
vendors. Customers from every corner of the
globe. BRONNERS CHRISTMAS WONDERLAND,
FRANKENMUTH, MI, POP 5,000 98,000-square-foot
shop features 6,000 Christmas ornaments,
50,000 trims, and anything else you can name
pertaining to Christmas. Source George
Whalin, Retail Superstars Inside the 25 Best
Independent Stores in America
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BE THE BEST. ITS THE ONLY MARKET THATS NOT
CROWDED. From Retail Superstars Inside the 25
Best Independent Stores in America, George Whalin
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Hidden Champions of the 21st Century Success
Secrets of Unknown World Market Leaders/Hermann
Simon (1, 2, or 3 in world market lt4B 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)

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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. (From a database of over
25,000 companies from hundreds of industries
covering 45 years, they uncovered 344 companies
that qualified as statistically
exceptional.) Jeff Colvin, Fortune The
Economy Is Scary But Smart Companies Can
Dominate They manage for VALUEnot for
EPS. They get RADICALLY CUSTOMER-CENTRIC. THEY
KEEP DEVELOPING HUMAN CAPITAL.
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Commodity is a state of mind. ANYTHING can
be DRAMATICALLY differentiated. Bo Burlingham,
Small Giants Companies That Choose to Be Great
Instead of Big)
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UPS to UPS
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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
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UPS to UPS
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Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves represent.
ecompany.com
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Its all about SOLUTIONS. We talk with
customers about how to run better, stronger,
cheaper supply chains. We have 1,000 engineers
who work with customers Bob Stoffel, UPS
senior exec
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UPS United Problem SolversService mark
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THE GIANT STALKING BIG OIL How Schlumberger Is
Rewriting the Rules of the Energy Game. IPM
INTEGRATED PROJECT MANAGEMENT strays from
Schlumbergers traditional role as a service
provider and moves deeper into areas once
dominated by the majors. BusinessWeek
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I. LAN Installation Co. (3 local market
share)II. GEEK SQUAD. (30 local market share
with name change.)III. Acquired by Best
Buy.IV. FLAGSHIP OF BEST BUYs WHOLESALE
SOLUTIONS STRATEGY MAKEOVER.
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• What are you INCREDIBLY GOOD at?
• (And what are you ordinary at? BE BRUTAL.)
• What are you BEST IN THE WORLD at?
• (The River Pools and Spas Rule)
• 3. Is your services package WILDLY
• IMAGINATIVE? (And growing constantly
• via TGRs, etc.?)
• 4. What share of profit comes from what
• share of customers? (The gt100 RULE)
• (The Tom Sturgess Rule) (Prune???)
• What is your customer/vendor visitation
• schedule (The Lou Gerstner/1-year rule)
• 6. Is your staff INSANELY WELL TRAINED?

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18 Seconds
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The doctor interrupts after Source
Jerome Groopman, How Doctors Think
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18
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18 seconds!
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Suggested Core Value 1 We are Effective
Listenerswe treat Listening EXCELLENCE as the
Centerpiece of our Commitment to Respect and
Engagement and Profitability and Growth.
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PEOPLE BEFORE STRATEGY
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PEOPLE BEFORE STRATEGY Lead article, Harvard
Business Review. July-August 2015, by Ram
Charan, Dominic Barton, and Dennis Carey
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You have to treat your employees like
customers. Herb Kelleher, upon being asked his
secret to successSource Joe Nocera, NYT,
Parting Words of an Airline Pioneer, on the
occasion of Herb Kellehers retirement after 37
years at Southwest Airlines (SWAs pilots union
took out a full-page ad in USA Today thanking HK
for all he had done) across the way in Dallas,
American Airlines pilots were picketing AAs
Annual Meeting)
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1996-2014/Twelve companies have been among the
100 best to work for in the USA every year,
for all 16 years of the lists existence along
the way, theyve added/ 341,567 new jobs, or job
growth of 172PublixWhole FoodsWegmansNords
tromCisco SystemsMarriottREIGoldman
SachsFour SeasonsSAS InstituteW.L.
GoreTDIndustriesSource Fortune/ The 100 Best
Companies to Work For/0315.15
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Shyp, a company that picks up, packages, and
ships items for its users, made a similar
transition to hiring employees for some roles in
July. In a blogpost, Shyp CEO Kevin Gibbon
explained that the change was "an investment in a
longer-term relationship with our couriers, which
we believe will ultimately create the best
experience for our customers." Sarah Kessler,
Fast Company, 0329.16, Why A New Generation Of
On-Demand Businesses Rejected The Uber Model
(The idea that an Uber for X model could fit
any service proved arrogant, especially for
customer-service focused startups.)
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Training Investment 1! (The 6/2/3
Rule/Ask the general boomer captain.)
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THE FOUR MOST IMPORTANT WORDS IN ANY
ORGANIZATION ARE WHAT DO YOU THINK?
Source courtesy Dave Wheeler, posted at
tompeters.com
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Employees who don't feel significant rarely make
significant contributions. Mark Sanborn
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CEO Doug Conant sent 30,000 handwritten Thank
you notes to employees during the 10 years
approx 10/day he ran Campbell Soup.Source
Bloomberg BusinessWeek
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It may sound radical, unconventional, and
bordering on being a crazy business idea.
However as ridiculous as it soundsjoy 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
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.. TGR gt TGW
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Customers describing their service experience as
superior 8 Companies describing the service
experience they provide as superior
80 Source Bain Company survey of 362
companies, reported in John DiJulius, What's the
Secret to Providing a World-class Customer
Experience?
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May I clean your glasses, sir?
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Get

































Em Away From the ATM and Into
the Branches7X. 730A-800P. Fri/12A.730AM
715AM.800PM 815PM.(2,000,000 dog
biscuits)Source Vernon Hill, Fans, Not
Customers (the story of Commerce Bank, the folks
who revolutionized East Coast retail banking)
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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TGRs (on steroids)L(Very)BTs
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Big carts 1.5X Source Walmart
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Las Vegas Casino/2X When Friedman slightly
curved the right angle of an entrance corridor to
one property, he was amazed at the magnitude of
change in pedestrian behaviorthe percentage who
entered increased from one-third to nearly
two-thirds. Natasha Dow Schull, Addiction
By Design Machine Gambling in Las Vegas
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With a new and forthcoming policy on apologies
Toro, the lawn mower folks, reduced the average
cost of settling a claim from 115,000 in 1991 to
35,000 in 2008 and the company hasnt been to
trial in the last15 years!
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..WTTMSW
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WHOEVER TRIES THE MOST STUFF WINS
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EXPERIMENT FEARLESSLYSource BusinessWeek,
Type A Organization Strategies How to Hit a
Moving TargetTACTIC 1RELENTLESS 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
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78
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Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint 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!
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INSANELY GREATSTEVE JOBSRADICALLY
THRILLING BMWASTONISH ME SERGEI DIAGHLEV,
TO A LEAD DANCERBUILD SOMETHING GREAT
HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME
DESIGNER MAKE IT IMMORTAL DAVID OGILVY, TO
A COPYWRITER.
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(No Transcript)
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• What are you INCREDIBLY GOOD at?
• (And what are you ordinary at? BE BRUTAL.)
• What are you BEST IN THE WORLD at?
• (The River Pools and Spas Rule)
• 3. Is your services package WILDLY
• IMAGINATIVE? (And growing constantly
• via TGRs, etc.?)
• 4. What share of profit comes from what
• share of customers? (The gt100 RULE)
• (The Tom Sturgess Rule) (Prune???)
• What is your customer/vendor visitation
• schedule (The Lou Gerstner/1-year rule)
• 6. Is your staff INSANELY WELL TRAINED?