Public Storage 2003 Annual Report Download - page 9

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Management Changes
During 2003 and the early part of 2004, we made several key senior management changes. Jack Baumann
joined our team as chief legal officer, having 20 years experience with operations, SEC compliance and
mergers and acquisitions. In addition, John Graul joined us as president of self-storage operations. John
comes to us after a 22-year career with McDonalds, having started as a store manager and rising to
vice-president overseeing 650 stores and over one billion dollars of sales, as well as real estate acquisitions,
developments and dispositions in his markets. The similarities between McDonalds and Public Storage are
astounding. In fact, in 1986, Harvey wrote an article for the self-storage industries leading trade journal
comparing the two companies, commenting that we are in the consumer service business selling storage
burgers. It only took us 18 years to hire a McDonalds executive.
Outlook
Last year we stated that to compete effectively in our business and prosper, we needed to achieve operational
excellence with a customer centric focus a business operation that focuses on customer preferences, services
and values. We identified what has become known as the three Ps:
People: Hire, train and retain outstanding people. All of our personnel must be customer focused,
knowledgeable of our products and have the desire and ability to provide exceptional service.
Product: Acquire, develop, rehabilitate and maintain quality facilities that build upon our franchise.
Our product needs to have the appropriate amenities and a retail orientation. It needs to be well
maintained and convey a sense of security.
Pricing: Use pricing, promotional discounts and advertising as competitive tools to attract and retain
customers.
Our customers want value, and we provide it through quality product, exceptional service and
competitive pricing.
The process of achieving operational excellence is ongoing and evolving. We made progress in 2003 which has
positioned us well for 2004. We believe our continuing focus on the three Ps will enable us to deliver good
value to our customers and above average returns to our owners.
Thank you for you continued interest in Public Storage, Inc.
Ronald L. Havner Jr.
Vice-Chairman and Chief Executive Officer
Harvey Lenkin
President and Chief Operating Officer
March 29, 2004