Joel ResnickJoel ResnickFlemingtonFlemingtonNew JerseyNew Jersey

The Red The Red Carpet Carpet StoreStore

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

Excellence:Excellence:Be the best.Be the best. It’s the only It’s the only market that’smarket that’s not crowded.not crowded.

Tom Peters/Mexico D.F./18 August 2011Tom Peters/Mexico D.F./18 August 2011(Slides @ (Slides @ tompeters.comtompeters.com))

““agile creatures agile creatures darting betweendarting between the legs of the the legs of the multinational multinational

monsters"monsters"

Source:Source: Bloomberg BusinessWeek Bloomberg BusinessWeek on the German on the German MITTELSTANDMITTELSTAND

Where the +201,000 new private-sectorWhere the +201,000 new private-sector jobs came from* … jobs came from* …

51%51% Small firms Small firms

41%41% Medium- Medium-sizedsized

8%8% BigBig*ADP National Employment Report/*ADP National Employment Report/MarchMarch 20112011

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

Small Giants: Companies that Chose to Be Great Instead of Big

““They cultivated They cultivated exceptionally intimate relationships with exceptionally intimate relationships with customers and supplierscustomers and suppliers, , based on personal contact, one-based on personal contact, one-on-one interaction, and mutual commitment to delivering on on-one interaction, and mutual commitment to delivering on promises.promises.

“Each company had an ach company had an extraordinarily intimate relationship extraordinarily intimate relationship with the local city, town, or countywith the local city, town, or county in which it did business in which it did business -- a relationship that went well beyond the usual concept of -- a relationship that went well beyond the usual concept of `giving back.’ `giving back.’

““The companies had what struck me asThe companies had what struck me as unusually unusually intimate intimate workplacesworkplaces..

““I noticed theI noticed the passionpassion that the leaders brought to what the that the leaders brought to what the company did.company did. They loved the subject matterThey loved the subject matter, , whether it be whether it be music, safety lighting, food, special effects, constant torque music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or hinges, beer, records storage, construction, dining, or fashion."fashion."

EX10/Entrepreneurial eXcellence TENEX10/Entrepreneurial eXcellence TEN

1. “Insane” 1. “Insane” PassionPassion for and commitment to for and commitment to the idea. the idea.2. Can explain the idea in Simple English [Spanish]2. Can explain the idea in Simple English [Spanish] and Excite others about its Uniqueness in and Excite others about its Uniqueness in ONEONE MINUTE MINUTE (or less). (or less).3. Good 3. Good ACCOUNTANT ACCOUNTANT (Loves the books)/“Wise-man(Loves the books)/“Wise-man (-woman)”/ (-woman)”/5050--5050 Partner. Partner.4. Devotee of the Experimental Method (“Try4. Devotee of the Experimental Method (“Try it. Now.” Fail. Forward. it. Now.” Fail. Forward. FASTFAST.)/Master of.)/Master of “Plan B”/ “Plan B”/RelentlessRelentless//RESILIENTRESILIENT..5. Patience in 5. Patience in HiringHiring/“/“GREAT PLACE TO WORKGREAT PLACE TO WORK”” from the get-go. from the get-go.6. 6. “d”“d”iversity (Any-all dimensions)/iversity (Any-all dimensions)/M-FM-F balance. balance.7. Exude 7. Exude DecencyDecency--CharacterCharacter--IntegrityIntegrity..8. 8. PlayfulnessPlayfulness/Fun./Fun.9. Sweat the details (9. Sweat the details (EXECUTIONEXECUTION = Strategy). = Strategy).10. 10. EXCELLENCEEXCELLENCE. Period.. Period.

SME Tweets/17 AugustSME Tweets/17 August

***In Mexico City for talk to SMEs. SMEs backbone every ***In Mexico City for talk to SMEs. SMEs backbone every economy in world—yet 90% business reporting and "guru-ing" economy in world—yet 90% business reporting and "guru-ing" focuses on clumsy giants.focuses on clumsy giants.***I always see smaller companies as having an extraordinary ***I always see smaller companies as having an extraordinary advantage. They can respond to change 100X faster than the advantage. They can respond to change 100X faster than the giants can.giants can.***A great SME advantage is focus—product, geography, etc.***A great SME advantage is focus—product, geography, etc.***"God" for SMEs? Muhammad Ali: "Float like a butterfly, sting ***"God" for SMEs? Muhammad Ali: "Float like a butterfly, sting like a bee."like a bee."***SME downside #1 may be success. Leads to "over-learning" ***SME downside #1 may be success. Leads to "over-learning" and pushing the initial formula long past its "sell-by" date.and pushing the initial formula long past its "sell-by" date.***SMEs far fewer people than big cos by definition. Hence ***SMEs far fewer people than big cos by definition. Hence every "people decision" takes on incredible significance!every "people decision" takes on incredible significance!***An SME should be a "best place to work." Prospective ***An SME should be a "best place to work." Prospective employees have opportunity to move up the learning curve employees have opportunity to move up the learning curve 100X faster than at big co.100X faster than at big co.***Wonderful counter-argument to SME “growth or else”: ***Wonderful counter-argument to SME “growth or else”: "Small Giants: Companies That Choose to Be Great Instead of "Small Giants: Companies That Choose to Be Great Instead of Big" by Bo BurlinghamBig" by Bo Burlingham***Current Inc. magazine on small co success secrets. #1: ***Current Inc. magazine on small co success secrets. #1: Ability to "take a punch," shake it off, and come back Ability to "take a punch," shake it off, and come back punching.punching.

TGRsTGRsLBTsLBTs

… descending into Delhi …

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

<TG<TGWWandand … …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

Design Design PrimacyPrimacy

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

and and hate!*hate!**Not “like” and “dislike”

$28,000,000,000,000$28,000,000,000,000

($28 ($28 TRILLIONTRILLION))

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning

strategy when it comes to women. Consider Dell’s …”strategy when it comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Women areWomen are thethe majority majority

market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

**Women Women decidedecide..**Women Women savesave..**Women Women ssppendend..**Women Women rulerule..

B1*B1**Bedrock Principal #1*Bedrock Principal #1

Conrad Hilton, at a gala celebrating his Conrad Hilton, at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

B2B2

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

18 …18 …SecondSecond

ss

[An [An obsessionobsession with] Listening is ... the ultimate mark with] Listening is ... the ultimate mark

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

B3B3

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

K = R = PK = R = PKindness = Repeat business = Kindness = Repeat business =

ProfitProfit

Service > Service > SalesSales

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.***PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.**

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

B4B4

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in USA (SWA’s pilots union took out a full-page ad in USA Today Today

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to Providing "What's the Secret to Providing

a World-class Cust Experience"a World-class Cust Experience"

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first

response is always to think response is always to think about the individual about the individual

concerned and concerned and how thinhow thinggs s can be arrancan be arrangged to heled to helpp that that

individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, RE/MAX

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!people!

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business

and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,

review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street

““The The fourfour most most imimpportantortant wordswords in any in any

organization are …organization are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What “What do do youyou think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.com Source: courtesy Dave Wheeler, posted at tompeters.com

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.—Anon.

B5B5

READY.READY.FIRE!FIRE!AIM.AIM.

H. Ross Perot (vs H. Ross Perot (vs ““Aim! Aim! Aim!”Aim! Aim! Aim!” /EDS vs GM/1985)/EDS vs GM/1985)

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals are ready By the time our rivals are ready

with wires and screws, we are on version with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

Better yet:Better yet: WTTMSTFWWTTMSTFW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffTheTheFastestFastestWinsWins

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

B6B6

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

Where’s your Where’s your “Craig’s List “Craig’s List

[WOW!] [WOW!]

option”option”????

““You do not merely want to You do not merely want to

be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry —Jerry

GarciaGarcia