Xerox: It Was a Heck of a Ride...

1/2018

NORWALK, Conn. and TOKYO — 

• Xerox shareholders to receive a $2.5 billion special cash dividend, or approximately $9.80 per share¹, and 49.9% of the combined company; Fujifilm to own 50.1%
• Combined company to deliver at least $1.7 billion in total cost savings, with $1.2 billion to be achieved by 2020
• Accelerates path to revenue growth through global reach, industry-leading scale and enhanced innovation capabilities
• Well-positioned to lead in growing business areas such as high-speed inkjet, industrial print and workplace solutions, while leveraging Fujifilm's extensive technologies
• Combined company will have enhanced financial flexibility for future growth investments and capital returns
• Combined company will have dual headquarters in Norwalk, CT, U.S. and Minato, Tokyo, Japan, and will maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions

FUJIFILM Holdings Corporation (“Fujifilm”) (TSE: 4901) and Xerox Corporation (“Xerox”) (NYSE: XRX) today announced that they have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture.

The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions. This proposed combination provides Xerox shareholders with significant cash at closing, as well as a substantial interest in the significantly enhanced combined company. Under the terms of the agreement, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, funded from the combined company’s balance sheet, and own 49.9% of the combined company at closing.

The cash dividend represents more than 30% of Xerox’s unaffected share price of $30.35 based on closing share price as of January 10, 2018. Fujifilm will own 50.1% of the combined company and provide important operational support and transformational leadership. The transaction has been unanimously approved by the Boards of Directors of both Fujifilm and Xerox.

The combined company will be named “Fuji Xerox” and trade on the NYSE under the ticker XRX. The new Fuji Xerox will have dual headquarters in Norwalk, CT, U.S. and in Minato, Tokyo, Japan, with presence in over 180 countries.

The combined company will go to market and maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions. Shigetaka Komori, chairman and chief executive officer of Fujifilm, said, “Fujifilm and Xerox have fostered an exceptional partnership through our existing Fuji Xerox joint venture, and this transaction is a strategic evolution of our alliance.

The Document Solutions business represents a significant part of Fujifilm’s portfolio, and the creation of the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market. We believe Fujifilm’s track record of advancing technology in innovative imaging and information solutions – especially in inkjet, imaging, and AI areas – will be important components of the success of the new Fuji Xerox.” Mr. Komori added, “I am confident that Fujifilm’s ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm. We are delighted to welcome Xerox and its employees to the Fujifilm family and look forward to combining our strengths towards jointly shaping the future of our industry.”

Jeff Jacobson, chief executive officer of Xerox, said, “The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders. The new Fuji Xerox will be better positioned to compete in today’s environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers’ rapidly-evolving demands.

In addition, the combined company’s strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time.”

Robert J. Keegan, chairman of Xerox’s Board of Directors, said, “Today’s announcement follows a comprehensive review of our strategic and financial alternatives led by Xerox’s independent directors that began after the separation of Conduent in 2016. Upon careful consideration of all alternatives available to the company, the Board of Directors concluded that this combination is clearly the best path to create value for our shareholders.

An attractive, certain cash dividend, together with participation in the future success of the combined company, presents a compelling value equation for Xerox shareholders. We are excited to strengthen our longstanding relationship with Fujifilm as we enter the next phase of Xerox’s transformation journey.”

Clear Leader in Innovative Print Technologies and Intelligent Work Solutions Xerox shareholders will have the opportunity to participate in the new Fuji Xerox’s accelerated revenue trajectory and long-term value creation potential. The transaction builds on the 56-year collaborative history between Fujifilm and Xerox to create a global leader in innovative print technologies and intelligent work solutions with enhanced scale and innovation capabilities: Global leader with combined revenue of approximately $18 billion and nearly $120 billion total addressable opportunity. Enhanced scale with presence in over 180 countries and covering key geographies including North America, Japan, Europe, Asia Pacific and China.

Combined leadership with a strong track record of operational excellence, transformation experience, customer relationships and industry expertise. Improved revenue profile and growth trajectory by leveraging the combined expertise, competitive strengths and geographic reach of the two companies.  World-class innovation capabilities to define the future of innovative print technologies and intelligent work solutions by bringing together two R&D and innovation leaders, along with Fujifilm’s extensive expertise.

The new Fuji Xerox will be well-positioned to lead in growing areas such as high-speed inkjet, packaging, industrial print and workplace automation, as well as future development opportunities in artificial intelligence, machine learning, internet of things and augmented reality. Strengthened balance sheet and cash flow generation to provide flexibility to support strategic investments in growth and enable increasing capital returns.

Significant Value Creation Opportunity This highly synergistic combination is expected to deliver at least $1.7 billion in total annual cost savings by 2022, with approximately $1.2 billion of the total cost savings expected to be achieved by 2020. The targeted cost savings represent approximately 10% of the total cost base of the new Fuji Xerox and will drive significant margin expansion over the next four years.

Of the total $1.7 billion cost savings, $1.25 billion is related to the synergies that will be achieved through the transaction. In addition, the combined company will benefit from a cost reduction program commencing immediately at the existing Fuji Xerox joint venture, which is targeted to generate approximately $450 million of cost savings on an annualized basis. These amounts are incremental to Xerox’s ongoing Strategic Transformation initiatives. The new company expects to incur approximately $1.4 billion in one-time integration and restructuring costs, mainly in the first three years.

The new Fuji Xerox will also have significant revenue synergy opportunities over time as it capitalizes on its global reach, industry-leading scale and enhanced innovation capabilities. Importantly, the combined company will have an increased total addressable opportunity estimated at nearly $120 billion and a strong presence in attractive growth markets, allowing the new company to become more competitive and better able to serve customers and business partners globally. Balance Sheet and Capital Allocation The new Fuji Xerox expects to maintain investment grade credit ratings at closing.

The new company will maintain Xerox’s current $1.00 annual dividend per share and commitment to return at least 50 percent of free cash flow to shareholders. The enhanced financial flexibility of the combined company is expected to allow for greater capital deployment toward targeted growth initiatives, share repurchases and increased dividends over time. Leadership and Governance Upon close of the transaction, Jeff Jacobson will serve as chief executive officer of the new Fuji Xerox.

The combined company’s Board of Directors will include 12 members, seven of whom will be appointed by the Fujifilm Board. Five independent directors will be appointed from the Xerox Board. Shigetaka Komori will serve as chairman of the board. Financing Commitments Financing commitments of $2.5 billion have been provided by Citigroup Global Markets Inc. and Morgan Stanley Senior Funding, Inc. Path to Completion The transaction, which is expected to close in the second half of calendar year 2018, is subject to the satisfaction of customary closing conditions and regulatory approvals and approval by Xerox shareholders.

Advisors Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Morgan Stanley & Co. LLC are serving as exclusive financial advisors to Fujifilm, and Morrison & Foerster LLP is acting as legal counsel. Centerview Partners LLC is serving as exclusive financial advisor to Xerox and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel. Xerox Conference Call Xerox will host a conference call today at 8:00 a.m. ET to discuss this transaction.

The webcast is available at https://edge.media-server.com/m6/p/7ffthvi5 or https://www.news.xerox.com/investors.

A replay of the call will be available at https://www.news.xerox.com/investors.

For More Information Additional information regarding the transaction can be found on www.thenewfujixerox.com. About Fujifilm FUJIFILM Holdings Corporation in Tokyo, Japan, brings continuous innovation with leading-edge, proprietary technologies by leveraging its photography expertise into a broad range of industries globally, including healthcare, graphic systems, highly functional materials, optical devices, digital imaging and document products.

These products are based on its extensive portfolio of chemical, mechanical, optical, electronic and imaging technologies. Fujifilm has operated in North America since 1965, with approximately 6,000 employees currently in the U.S. and Canada. For the year ended March 31, 2017, the company had global revenues of $20.7 billion, at an exchange rate of 112 yen to the dollar. Fujifilm is committed to responsible environmental stewardship and good corporate citizenship. For more information, please visit: www.fujifilmholdings.com.

About Xerox Xerox Corporation is a technology leader that innovates the way the world communicates, connects and works. We understand what’s at the heart of sharing information – and all of the forms it can take. We embrace the integration of paper and digital, the increasing requirement for mobility, and the need for seamless integration between work and personal worlds.

Every day, our innovative print technologies and intelligent work solutions help people communicate and work better. Discover more at www.xerox.com and follow us on Twitter at @Xerox. About Fuji Xerox Founded in 1962, Fuji Xerox Co., Ltd. is a leading company in the Document Services & Communications field, offering solutions and services to help customers resolve their business challenges. Underlying our solutions and services are our world-class office multifunction devices, printers and production printers that we develop and manufacture for worldwide distribution. Together with cloud and mobile solutions, Fuji Xerox builds a communications environment that enable our customers to access the right information, at the right time, and in the right form—thereby contributing to their valuable communications.

Fuji Xerox is a 75-25 joint venture between FUJIFILM Holdings Corporation and Xerox Corporation, and its direct sales force covers Japan and the Asia-Pacific region including China. As a $10 billion enterprise, we employ approximately 47,350 people globally, with more than 80 domestic and overseas affiliates / sales subsidiaries. For more information, please visit www.fujixerox.com. Additional Information and Where to Find It This release may be deemed to be solicitation material in respect of the transactions with FUJIFILM Holdings Corporation (“Fujifilm") described herein (the “Transactions”) and/or the matters to be considered at the Company’s 2018 Annual Meeting of Shareholders. In connection with the Transactions and the 2018 Annual Meeting, Xerox plans to file with the Securities and Exchange Commission (“SEC”) and furnish to Xerox’s shareholders one or more proxy statements and other relevant documents.

BEFORE MAKING ANY VOTING DECISION, XEROX’S SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT(S) IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTIONS AND/OR THE COMPANY’S 2018 ANNUAL MEETING OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTIONS AND/OR THE COMPANY’S 2018 ANNUAL MEETING AND THE PARTIES RELATED THERETO.

Xerox’s shareholders will be able to obtain a free copy of documents filed with the SEC at the SEC’s website at http://www.sec.gov. In addition, Xerox’s shareholders may obtain a free copy of Xerox’s filings with the SEC from Xerox’s website at http://www.xerox.com under the heading “Investor Relations” and then under the heading “SEC Filings.” Participants in the Solicitation The directors, executive officers and certain other members of management and employees of Xerox may be deemed “participants” in the solicitation of proxies from shareholders of Xerox in favor of the Transactions or in connection with the matters to be considered at the Company’s 2018 Annual Meeting.

Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders of Xerox in connection with the Transactions or the Company’s 2018 Annual Meeting will be set forth in the applicable proxy statement and other relevant documents to be filed with the SEC. You can find information about Xerox’s executive officers and directors in Xerox’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, Xerox’s and such persons’ other filings with the SEC and in Xerox’s definitive proxy statement filed with the SEC on Schedule 14A. Cautionary Statement Regarding Forward-Looking Statements This release, and other written or oral statements made from time to time by management contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. Such factors include but are not limited to: our ability to address our business challenges in order to reverse revenue declines, reduce costs and increase productivity so that we can invest in and grow our business; changes in economic and political conditions, trade protection measures, licensing requirements and tax laws in the United States and in the foreign countries in which we do business; changes in foreign currency exchange rates; our ability to successfully develop new products, technologies and service offerings and to protect our intellectual property rights; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; the risk that partners, subcontractors and software vendors will not perform in a timely, quality manner; actions of competitors and our ability to promptly and effectively react to changing technologies and customer expectations; our ability to obtain adequate pricing for our products and services and to maintain and improve cost efficiency of operations, including savings from restructuring actions; the risk that individually identifiable information of customers, clients and employees could be inadvertently disclosed or disclosed as a result of a breach of our security systems; reliance on third parties, including subcontractors, for manufacturing of products and provision of services; our ability to manage changes in the printing environment and expand equipment placements; interest rates, cost of borrowing and access to credit markets; funding requirements associated with our employee pension and retiree health benefit plans; the risk that our operations and products may not comply with applicable worldwide regulatory requirements, particularly environmental regulations and directives and anti-corruption laws; the outcome of litigation and regulatory proceedings to which we may be a party; the risk that we do not realize all of the expected strategic and financial benefits from the separation and spin-off of our Business Process Outsourcing business; the effects on our business resulting from actions of activist shareholders; and other factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017, June 30, 2017 and September 30, 2017 and our 2016 Annual Report on Form 10-K, as well as our Current Reports on Form 8-K filed with the SEC.

Furthermore, the actual results of the Transactions could vary materially as a result of a number of factors, including, but not limited to: (i) the risk that the transactions may not be completed in a timely manner or at all, which may adversely affect Xerox’s business and the price of Xerox’s common stock, (ii) the failure to satisfy the conditions to the consummation of the transactions, including the receipt of certain approvals from Xerox’s shareholders and certain governmental and regulatory approvals, (iii) the parties may be unable to achieve expected synergies and operating efficiencies in the transactions within the expected time frames or at all, (iv) the transactions may not result in the accretion to Xerox’s earnings or other benefits, (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction agreements, (vi) the effect of the announcement or pendency of the transactions on Xerox’s and/or Fujifilm business relationships, operating results, and business generally, risks related to the proposed transactions disrupting Xerox’s current plans and operations and potential difficulties in Xerox’s employee retention as a result of the transactions, (vii) risks related to diverting management's attention from Xerox’s ongoing business operations, (viii) the outcome of any legal proceedings that may be instituted against Xerox, its officers or directors related to the transaction agreements or the transactions and (ix) the possibility that competing offers or acquisition proposals for Xerox will be made. Xerox assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law. Fuji Xerox Co., Ltd. (“Fuji Xerox”) is a joint venture between Xerox Corporation and Fujifilm in which Xerox holds a noncontrolling 25% equity interest and Fujifilm holds the remaining equity interest.

In April 2017, Fujifilm formed an independent investigation committee (“IIC”) to primarily conduct a review of the appropriateness of the accounting practices at Fuji Xerox’s New Zealand subsidiary and at other subsidiaries. The IIC completed its review during the second quarter 2017 and identified aggregate adjustments to Fuji Xerox’s financial statements of approximately JPY 40 billion (approximately $360 million) primarily related to misstatements at Fuji Xerox’s New Zealand and Australian subsidiaries. We determined that our share of the total adjustments identified as part of the investigation was approximately $90 million and impacted our fiscal years 2009 through 2017. We concluded that we should revise our previously issued annual and interim consolidated financial statements for 2014, 2015 and 2016 and the first quarter of 2017 the next time they are filed. Our review of this matter has been completed. However, Fujifilm and Fuji Xerox continue to review Fujifilm’s oversight and governance of Fuji Xerox as well as Fuji Xerox’s oversight and governance over its businesses in light of the findings of the IIC. At this time, we can provide no assurances relative to the outcome of any potential governmental investigations or any consequences thereof that may happen as a result of this matter. -XXX- 1 Based on diluted shares outstanding as of January 31, 2018, assuming no conversion of preferred shares.

Who Helps You Reduce Costs? Copier sales people, managed IT folks, or Advisors?

Who will give you a leg up?

"You will never print another document ever again.”

I know you still have printers and copiers. But I know you’re not printing or copying like you had three years ago. If you’ve made business process optimization an initiative, then you know what I mean. I’ve also found that companies with no ‘green’ or digitization plan, have naturally reduced print. Some telling me, ‘we just don’t print anymore’. I also know players like Xerox, Ricoh, and Lexmark are experiencing great consolidation, and paper plants have shuttered across country. Indeed, from the WSJ, 1/2018-

"One of Xerox’s problems is that it has been broken into two pieces. A year ago, Conduent Inc. (NYSE: CNDT) was spun out. It describes itself as a “business process services” company, which makes it more of a consultancy than a seller of hardware. Xerox retained the hardware business, which sells products that may have been useful to businesses a decade ago but are no longer.”

Customers around the world, are organically reducing devices, copies and prints needed to conduct business- this has been going on for years. For companies like Xerox and Ricoh, whose primary revenue stream is generated with each sheet of marked paper, this is a formidable challenge. And like every shrinking industry before it, the copier niche is not going quietly into the night. For those of you left looking for a copier, it might the best time to work your provider for better pricing - just wait until the 25th of the month - everyone is scrambling and competing for a slice of a shrinking pie.

In the face of this turbulence, photocopier manufacturers and independent dealers are responding in one of three ways -

1. Selling themselves as a "document consultant” and trusted advisor, promising to help you manage your decreased reliance on print.
2. Selling to a larger dealer or manufacturer in an effort to cash out and retire.
3. Shifting away from copiers and printers to markets like IT services, water or energy management.

As you explore new ways to eliminate cost, you may fall within one of these stages:

1. You’ve implemented cost reduction program successfully and want to expand
2. You’ve implemented a failed program
3. You have no visibility into total costs

In each case, starting a study, correcting a misaligned program or continuing to reduce costs, you have three sources of partners:

1. IT providers(including your internal IT)- primarily supporting IT infrastructure
2. Copier/Print supplier & MpS Providers - hardware and software vendor within the copier/printer industry either through direct or indirect channels
3. Professional IT advisors - organizations who derive revenue through sharing subject matter expertise and managing change

No matter who you choose to partner, you should consider three important aspects of each:

* Agenda vs. intent
* Knowledge vs. Wisdom
* Neutrality vs. Bias

Let’s take a look at each:

IT Provider -

Agenda: To support organizational technology infrastructure
Intent: To transform with as little negative impact to end user environment

Knowledge: Deep ‘specification’ knowledge.
Wisdom: Experience and a varied history of supporting IT infrastructure in different types of organizations may give rise to wisdom or business acumen, but this is rare.

Neutrality: Not very. Comfortable with manufacturers they have a history with; CISCO, IBM, DELL and HP, etc.
Bias: To what’s been proven in the past or passes a proof-of-concept.

Copier/Printer supplier -

Agenda: to move opportunities to a close and their intent is to sell more devices/clicks.
Intent: Transform with as little negative impact to end user environment.

Knowledge: Deep ‘specification/machine’ knowledge. May posses basic scanning and onboard application knowledge.
Wisdom: Very little business acumen. Fresh sales professionals lack experience in varied customer, business models. Seasoned profess

Neutrality: Claimed yet impossible, therefore a lie.
Bias: Toward a solution that include's hardware sold.

Professional Advisor -

Agenda: Help client achieve business goals.
Intent: Establish an ongoing relationship.

Knowledge: Business acumen and technical prowess beyond the scope of the project.
Wisdom: Experience over time with many environments and business models.

Neutrality: Completely neutral and open to continuous evaluation of new solutions.
Bias: Toward a solution that supports the client business goals.

Conclusion -

Economic pressures on providers of equipment is severe. Machines are becoming more self-sufficient and easier to manage remotely, business requirements are changing from paper flow to digital flow. Even if your printing less than 500 images a week, you are a prime prospect for the remaining copier vendors - your company is guaranteed to be on some copier rep’s cold call list. There is no shortage of cost reducing value propositions, white papers and marketing material.

Continuously reducing costs associated with output is an internal function - asking teams of folks motivated to sell more devices to help you reduce the number of devices is counter intuitive - a provider with show rooms full of equipment pitching themselves as an “agnostic, trusted advisor” is disingenuous.

So who do you turn to? There are a thousand copier dealerships, hundreds of MSP’s and maybe a dozen proven, reliable and seasoned advisors. Of course, if you can find a good advisor, with an open calendar, I recommend engaging - but the odds are forever in the copier companies favor - it is simply math.

Here’s a quick recommendation:

If you currently support 1-20 devices, copier dealer and MSP
If you currently support 50-100 devices, MSP with Advisor
If you currently support over 100 devices, exclusively work with an Advisor who manages an optimized portfolio of suppliers and software providers.

Of Blockchain, IoT and Scan-Once-Print-Many

What does "scan once, print many" mean? Anyone? Bueller ... ? Back in the good old days of analog copiers, pagers and dinosaurs, the scanner on copiers needed to take a “picture” for every copy made: When 10 copies were requested, the scanner moved across the original 10 times. You can imagine how this added to the wear and tear of a device and repeated, on-site service.

Once devices became digital, the need to scan for each copy ended. Instead, one picture was taken, digitized and available to print for each image requested.

It was a common demo technique to place an original on the glass, touch 10 copies, and while the batch was being output, raise the ADF. In the analog world, this act would result in copies of open lids and black space. Prospects were known to gasp because the digital photocopier kept churning out copies of the original, even with the lid raised.

Digital devices carried another cool quality;

-- Read the Rest, Here --

Industry Consolidation: A Bruce or Caitlyn Jenner Moment?

On July 30, 1976, American Bruce Jenner wins gold in the decathlon at the Montreal Olympics. His 8,617 points set a world record in the event.

Previously identifying publicly as male, Jenner revealed her identity as a trans woman in April 2015, publicly announcing her name change from Bruce to Caitlyn in a July 2015 Vanity Fair cover story.

Everything changes, baby that's a fact - when we refuse to see the impact of the shift, we call it 'disruption'. Worse, if we misread the writing on the wall, becoming overly optimistic, expectations do not meet reality. Disappointment ensues.
There's so much to say about the consolidation movement going on in our little niche but if you ask me, the future is neither bright nor dark - it is simply the way it was always meant to be.

For years Xerox has been buying up dealerships.  Lexmark sold out to a communist country. The toner-dudes jumped to one big ship. Ricoh assimilated Ikon, Canon did Oce, Konica Minolta ate Muratec and ECi is forming the Galactic Empire, collecting software like so many green M&M's.

How will all this impact the everyday salesperson?  How about contracts, sales, and service managers?  Perhaps a radical makeover is in around the corner?

See Your Future in the Past - 

When automotive robots started painting vehicles, some saw this as the end of labor.  The machine possessed advantages over their human predecessors - no vacation, no sick time, or union squabbles with consistent performance.  Formidable, but we survived.

When the PC/Word processor began to erode typewriter sales, receptionists around the globe disappeared within a decade, and we survived.

When Bruce turned into Jennifer, we survived.

We envision the future as we see ourselves: perhaps through the lens of July 1976, or from the perspective of April 2015.  Which is better? Time will tell.

When the world looks back on the Age of Paper, protests, and pontifications lamenting its passing will be nothing more than a footnote.

All I can suggest is in a turbulent world,  knowing who you are, is paramount.

Take The Snowflake Test. My Answers.

This has been floating around LI for months now. 

Kyle Reyes, CEO, The Silent Partner Marketing, has filtered out about 60% of candidates with this simple set of questions.

I like the idea and love that he's been able to create a huge buzz, promoting this simple questionnaire.

Enjoy.

The Snowflake Test

Outside of standard benefits, what benefits should a company offer employees?
Nothing.

What should the national minimum wage be?
Let the market dictate.

How many sick days should be given to employees?
10 days.

How often should employees get raises?
Based on merit.

How do you feel about guns?
Love em.

What are your feelings about employees or clients carrying guns?
Sounds good to me.

What are your feelings about safe spaces in challenging work environments?
I have no idea what you mean by 'safe spaces' or 'challenging work environments.

In a creative environment like The Silent Partner Marketing, what do you envision work attire looking like?
Casual business for internal meetings, business attire for customer-facing.

Should “trigger warnings” be issued before we release content for clients or the company that might be considered “controversial”?
What the hell is a "trigger warning"?

How do you feel about the police?
I like the police.

If you owned the company and were to find out that a client is operating unethically but was a high-paying client…how would you handle it?
Kiss em goodbye.

When was the last time you cried and why?
No comment.

You arrive at an event for work and there’s a major celebrity you’ve always wanted to meet. What happens next?
Wait for her to come to me.

What’s your favorite kind of adult beverage?
Bourbon.

What’s the best way to communicate with clients?
Face to face.

What’s your favorite thing to do in your free time?
Wine tasting, writing, read, outdoors.

What are your thoughts on the current college environment as it pertains to a future workforce?
OMG, the current college environment is filling generations with nonsense.

What’s your typical breakfast?
Eggs, bacon, coffee.  Why?

What’s your favorite drink when you go to a coffeehouse?
Black.

How do you handle bullies?
Slug em in the head, metaphorically.

How do you handle it when your ideas are shot down?
Rethink my presentation/approach.

What do you do if a coworker comes to the table with an idea and it sucks?
Tell the coworker the idea sucks.

What does the first amendment mean to you?
I can say pretty much anything I like without the guarantee to be heard.

What does faith mean to you?
Believing without proof.

Who is your role model and why?
I have no role models.

“You’re in Starbucks with two friends. Someone runs in and says someone is coming in with a gun in 15 seconds to shoot patrons. They offer you a gun. Do you take it? What do you do next?”
I take the gun, get folks out the back door, assume the stance between the shooter and them, and shoot the bad guy in the forehead.  Twice.  Then render aid, if he's still alive.

What does America mean to you?
Everything good.

You see someone stepping on an American flag. What do you do?
Shake my head in disgust.

What does “privilege” mean to you?
My parents looked out for me before they knew who I was going to be.

What’s more important? Book smarts or street smarts? Why?
Street.  Why?  See the above Starbucks question.

Kyle S. Reyes is President and CEO of The Silent Partner Marketing. He’s also an acclaimed keynote speaker on entrepreneurship, leadership, marketing, and social media. You can follow him on Facebook.

GRWalters.com