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The tutorial discusses the process of creating a custom compact layout in an account object within a CRM system. It begins by identifying the importance of compact layouts for showcasing key fields prominently to user representatives. To edit the compact layout, the user is directed to the setup by selecting 'edit object' for the account. Within the left sidebar, the compact layouts option is located, where the system default layout can be viewed but not edited. The user clones the default layout, naming it "custom compact layout," and plans to remove several fields to tailor the layout to specific needs. The tutorial emphasizes making important custom fields easily accessible.