Lessons in Leadership:
Tom Peters Seminar M3
MSP/13Feb2001

More at … tompeters.com
Slides from this seminar;
Master Presentation, for in-depth; annotated Special Presentations
[Women Rule!, Design!, etc.].
“Cool Friends”
(referenced in seminar).
Discussions re this stuff.
Calendar of events.
Etc.

“There will be more confusion in the business world in the next decade than in any decade in history.
And the current pace of change will only accelerate.”
Steve Case

Rollercoaster Days2001: Blood on retail’s streets: Montgomery
Wards, Bradlees, Sears, Penney.
Layoffs/10K+: Chrysler [27K] ,
Lucent, WorldCom, GM.
GE: 80,000??? [I’net driven.]
Other Big: Sara Lee, Ford,
Caterpillar. Human cloning within
1 year.
First space tourist.

“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years.
Legally and financially, yes, but not structurally and economically.”
Peter Drucker, Business 2.0 (08.00)

Paul Allaire

The Kotler Doctrine:
1965-1980: R.A.F.
(Ready.Aim.Fire.)
1980-1995: R.F.A.
(Ready.Fire!Aim.)
1995-????: F.F.F.
(Fire!Fire!Fire!)

John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge customers on the attack.
2. Time cannot be sacrificed for better quality, lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire leading technology. Our job is to provide the technology and products our customers need.
4. Success is achieved by leading change, not waiting for it.
5. We are paranoid about our leadership – willing to cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)

“It used to be that the big ate the small.
Geoff Yang, IVP/ (Institutional
Venture Partners)

Read It Again:
Peter Lewis, Progressive

Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership

Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership

Forces @ Work I

Forget>“Learn”
“The problem is never how to get new, innovative thoughts into your mind,
Dee Hock

“When asked to name just one big merger that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
Committee, answered:
I’m sure there are success stories out there, but at this moment I draw a blank.”
Mark Sirower, The Synergy Trap

“Acquisitions are about buying market share.
There is a big difference.”
Peter Job, CEO, Reuters

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.
We buy the engineers and the next generation product. …”
John Chambers, Cisco

Lessons from the Bees!
“Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster.
What the bees are telling us is that the corporate world has got it all wrong.”
David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]

Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.”
“Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.”
Fast Company (03-00)

The [New] G e
Way

The Gales of Creative Destruction
+29M
+4M

Message: Destroy to create!

Brand Inside
Brand Org:

Headline: “Bank of America to Cut
… 10,000 Jobs”
“Middle-level and senior managers are expected to be the principal targets of the job cutbacks.”
Source: The New York Times (07.29.2000)

vs.
* 540 vs. 8 (-98.5%)

The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!

Dan Sullivan, consultant and executive coach

Automation+
75% of what we do: 40
“expert” decision rules!

John Bryan, CEO, on selling all
Sara Lee’s manufacturing

F.G.

Jeff Skilling, COO, Enron

Cisco, Dell =
Brand-owning companies who sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism [e.g.: Cisco owns 2 of 38 assembly plants]

RR on “Assetless” [J.B.] Sara Lee
“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

Advance Paradigm
Data on 165,000,000 prescriptions per year; docs and insurers have access to records
Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98
Source: Business Week (09.00)

Message: The W.C.R. is inevitable. Lead it. Or get swallowed by it.

Brand Inside
Brand Work:

Answer: PSF!
[Professional Service Firm]
Department Head to …
Managing Partner,
HR [IS, etc.] Inc.

“support function” / “cost center” / “bureaucratic drag”

Credo: W.W.P.F.

“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View (Methodology)
W.W.P.F. (100%)/Outside Clients (25%)
When: Now!

The Raw Material …
WOW

Phil Daniels, Sydney exec

“Every project we take on starts with a question:
How can we do what’s never been done before?”
Stuart Hornery, CEO, Lend Lease

Message: PSF and WOW
Projects are minimum
W.C.R. survival strategies.
(And a better way to live.)

Brand Inside
Brand You:

2010 “Demographics”:
Source: MIT study (28August2000)

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.”
Michael Goldhaber, Wired

Minimum New Work SurvivalSkillsKit2000
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Finishing Skills
Entrepreneurial Instinct
CEO/Leader/Businessperson
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal

Assignment
Construct a 1/8-page or
1/4-page ad for
… for the

“You are the storyteller of your own life, and you can create your own legend or not.”
Isabel Allende

Brand You, Big Time!

R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/ R.I.P.

“You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH

“Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the
No. 1 industry in the next 30 years … mostly on line.”
Peter Drucker,
Business 2.0 (22August2000)

Invent. Reinvent. Repeat.
Source: HP banner ad

Message : Distinct … or
Extinct.

Brand Inside
Brand Talent:

“When land was the productive asset, nations battled over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH

1.
Obsession
P.O.T.* = All Consuming
*Pursuit of Talent

From “1, 2 or 3” [JW] to …
“
in each industry segment to build best proprietary intangibles”
[EM]
Source: Ed Michaels, War for Talent (05.17.00)

2.
Greatness
Only The Best!

Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank:
BEST PERSON
IN THE WORLD
TO HEAD
EACH INITIATIVE
E.g.: COO of IKEA to head international expansion
Ed Michaels, War for Talent (05.17.00)

3.
Performance
Up or out!

“We believe companies can increase their market cap 50 percent in 3 years. Steve
Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge.
He increased profitability from $25 million to $80 million in 2 years.”
Ed Michaels, War for Talent (05.17.00)

4.
Pay
Fork Over!

“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.”
Ed Michaels, War for Talent (05.17.00)

“We value engineers like professional athletes.
We value great people at 10 times an average person in their function.”
Jerry Yang, Yahoo

So-so plant manager, $1M per year. Pay: $110,000 plus
$60,000. Top plant manager,
$3-4M per year. Pay:
$135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for
Talent, re Georgia Pacific

5.
Youth
Grovel Before the Young!

“Why focus on these late teens and twentysomethings? Because they are the first young who are both in a position to change the world, and are actually doing so.
… For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.”
The Economist [12/2000]

“Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities.
Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)

6.
Diversity
Mess Rules!

“Where do good new ideas come from? That’s simple! From differences. Creativity comes from unlikely juxtapositions.
The best way to maximize differences is to mix ages, cultures and disciplines.”
Nicholas Negroponte

“Diversity defines the health and wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge

Women

“AS LEADERS, WOMEN
RULE: New Studies find that female managers outshine their male counterparts in almost every measure”
Title, Special Report, Business Week, 11.20.00

“On average, women and men possess a number of different innate skills. And current trends suggest that many sectors of the twentyfirst-century economic community are going to need the natural talents of women.”
Helen Fisher, The First Sex: The Natural Talents of
Women and How They Are Changing the World

The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing one’s place”!

“Guys want to put everybody in their hierarchical place.
Like, should I have more respect for you, or are you somebody that’s south of me?”
Paul Biondi, Mercer Consultants [from It’s Not
Business, It’s Personal, Ronna Lichtenberg]

Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less threatened by strong people]
Intrinsic [motivation] > Extrinsic

“TAKE THIS QUICK QUIZ : Who manages more things at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it easier to meet new people?
Who asks more questions in a conversation? Who is a better listener?
Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition?
Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful
Reasons Why Women Can Outsell Men , Nicki Joy &
Susan Kane-Benson

“Investors are looking more and more for a relationship with their financial advisers. They want someone they can trust, someone who listens.
In my experience, in general, women may be better at these relationship-building skills than are men.”
Hardwick Simmons, CEO, Prudential Securities

It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in high-level math and science courses
More girls in student govt., honor societies; girls read more books, outperform boys in artistic and musical ability, study abroad in higher numbers
Boys do rule: crime, alcohol, drugs, failure to do homework (4:1)
Source: The Atlantic Monthly (May2000)

Read This!
“Winning the Talent War for Women: Sometimes It
Takes a Revolution”
Douglas McCracken, HBR [11-12/2000]

“Deloitte was doing a great job of hiring highperforming women; in fact, women often earned higher performance ratings than men in their first years with the firm. Yet the percentage of women decreased with step up the career ladder. … Most women weren’t leaving to raise families; they had weighed their options in Deloitte’s maledominated culture and found them wanting.
Many, dissatisfied with a culture they perceived as endemic to professional service firms, switched professions.”
Douglas McCracken, “Winning the Talent War for Women” [HBR]

“The process of assigning plum accounts was largely unexamined. …
Male partners made assumptions:
‘I wouldn’t put her on that kind of company because it’s a tough manufacturing environment.’ ‘That client is difficult to deal with.’ ‘Travel puts too much pressure on women.’ ”
Douglas McCracken, “Winning the Talent War for
Women” [HBR]

Alert to Women …

“ ‘Obeying the rules’ is obeying
rules.
[Women] can never be powerful as long as they try to be in charge in the same way men take charge.”
Harriet Rubin,
The Princessa: Machiavelli for Women

Okay, you think I’ve gone tooooo far.
How about this:

63 of top 2,500 earners in F500
8% Big 5 partners
14% partners at top 250 law firms
7% movie directors
43% new med students; 26% med faculty; 7% deans
28% women VPs in line jobs
Source: Susan Estrich, Sex and Power

8.
Weird
The Cracked Ones
Let in the Light!

The Cracked Ones Let in the Light
“Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels.”
David Ogilvy

Axiom:

9.
Opportunity
Make It an Adventure!

“H.R.” to “H.E.D.” ???
H uman
E nablement
D epartment

“Firms will not ‘manage the careers’ of their employees. They will provide opportunities to enable the employee to develop identity and adaptability and thus be in charge of his or her own career.”
Tim Hall et al., “The New Protean Career Contract”

10.
Leading Genius
We are all unique!

Beware Lurking HR Types …

Insights from 80,000 managers:
“People don’t change much.
“Don’t waste time trying to put in what was left out.
“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently

Employee retention & satisfaction:
Overwhelmingly, based on their immediate manager!
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently

Managing : “The people thing” [Inspire one]
[Cool!]
Leading : “The vision thing” [Inspire all] [Cool!]

MantraM3

What’s your company’s …
Employee Value Proposition , per Ed
Michaels et al., The War for Talent

EVP = Challenge, professional growth, respect, satisfaction, opportunity, reward
[EVP = “The company’s fingerprint” = B.P.]
Source: Ed Michaels et al., The War for Talent

Message: Talent rules!
Women leaders rule!
Become “Talent
Obsessed”! Become
“EVP Obsessed”!

Brand Inside
Brand Action:

The following slide begins the
“Boss-Free Implementation of
Stuff That Matters” Section. The slides in this section are heavily annotated.
Use Normal or Notes Page View to access the notes.

THE IDEA
“4Fs”: F ind a
F ellow
F reak
F araway

Heart of the Matter
*Freak to Freak … or K2K [Kook to Kook]

World’s Biggest Waste …

THE NUGGET

Opportunity ALWAYS Knocks
*Volunteer For Crappy Jobs

Is It …
“The Oh-Hell-I-Wish-It-Were-
Over Memorial Day picnic” or
“The First Annual
eriously
ewl
elebration of Our
Incredible Staff”

Is It …
Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War for Talent via … a thoroughgoing review of how safety and environmental issues contribute to making this a
Great Place to Work?

Is It …
Fix these bloody customer problems that have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young division GM on … using the Internet/Internet Speed to revisit the entire process of how we get customer input – before and during the fact – into the heart of the Product Design Process?

Reframers’ Rules:
Rule 1:
Never accept an assignment as given!
(Please.)
Rule 2: You’re never so powerful as when you are “powerless”!
Rule 3: Every “small” project contains the entire enterprise DNA!

THE TOOL
Mania!

Culture of Prototyping
“Effective prototyping may be
an innovative organization can hope to have.”
Michael Schrage

High-tech exec, PA

Winston Churchill
(as quoted by John Peterman)

THE SOFT STUFF

See: Saul Alinsky’s
Rules for Radicals

BOTTOM LINE

Epitaph from Hell …
Joe T. Jones
1942 – 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!

Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of command”
“Support the boss”
“Make budget”
*Fortune, article on
“Most Admired Global Corporations”

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.
Michelangelo

Message: Think
EPITAPH!

Brand Inside

Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners
[Measure the CustomerPartner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by”
[Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners
[F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity] /Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird] /Lunch with Weird/
Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Reenforce a “Culture of Disrespect”/PassionatePiracy

Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Edge Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees

Button-down Org H.S.D.E.
.
•
• Acquire for market share
• Suck up to biggest customers
• Pursue “strategic vendors”
• Bigger is better
• Accept assignments as given
• Hire 4.0s from “top schools”
• Promote when they’ve “paid their dues”
• Appoint a “prestigious” board
Hang out with my pals
• R.A.F.
• Be “professional” at all times/Honor thine elders
• Acquire for innovation
• Partner with cool customers
• Seek out pioneering vendors
• Break it up … to refresh
• Reframe all tasks to innovate
• Hire “intriguing,” wherever
• Promote tomorrow if the work product is weird and WOW
• Appoint an interesting, headstrong board
• Take a freak to lunch today
• F.F.F.
• Stay loose, stay cool/The hell with thine elders

Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.

N.W.O.:
Was Is Is
•
•
•
• Pine-paneled Office • Seat 9B, UA233
• Address: 1 Big Man Plaza • Address: Anne@Corp.com
• Secretary • Typing: 60 WPM
Suit
Formal
• Rank conscious
• Pretense (“Failures are for fools.”)
I love “Yes men”
• Self-contained
•
•
• Casual M-F
• Approachable
We are a HOT Team
• Screwing up is as normal as breathing
• I love Misfits!
I love partners

Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership

Forces @ Work II

Quality Not Enough!
“While everything may be better,
Paul Goldberger on retail, “The Sameness of Things,” The New York Times

“We make over three new product announcements a day. Can you remember them?
Carly Fiorina

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business

“Companies have defined so much ‘best practice’ that they are now more or less identical.”
Jesper Kunde, A Unique Moment

Message : “Similar” kills!
Stomp out the Sameness
Epidemic!

Brand Outside
Strategy 1 :

“If you worship at the throne of the voice of the customer, you’ll get only incremental advances.”
Joseph Morone, President,
Bentley College

“These days, you can’t succeed as a company if you’re consumer led – because in a world so full of so much constant change, consumers can’t anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner, Merkley Newman Harty

“Our strategies must be tied to leading edge customers on the attack.
If we focus on the defensive customers, we will also become defensive.”
John Roth, CEO, Nortel

Message: Seek out
freaks! Listen to your
intuition. Rock & Roll on the fringes!

Brand Outside
Strategy 2 :

Tomorrow Today: Cisco!
90% of $20B
(=$50M/day)
75% mfg. outsourced; 50% of orders routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Annual savings in service and support from customer self-management: $550M

Enron eWorld: 30 times a day
(“price a structured trade”/early
1999, per John Arnold, 26); late
2000: 30 times per … minute.
Long-term gas contract, 1989: 9 months, 400+ deals; late 90s: 2 weeks, 2 per week; late 2000:
5 such deals per day
Source: www.ecompany.com (1-2/2001)

GM/Ford/DaimlerChrysler/Renault/
Nissan/Oracle/CommerceOne
Covisint (02.2000)
$240B (+$500B)
90,000 Suppliers
$2-3,000/Car
42 to 12-18 Months
Source: Business2.0 (02.2001)

Next Up for the Web: Small Bus!
IDC (01.22.01): Small bus* eCommerce revenue will grow from $12B in 1999 to
$110B in 2003 (75% p.a.).
*There are 25.5 small bus and home bus

“The Internet is not going away – but flawed business models are.”
– fool.com.
“All these people running around saying the Internet is dead – that’s ridiculous.”
– Advertising Age.
Sabre I’net revenues … +201%.

Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

Welcome to
D.I.Y. Nation!
“Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.”
Ray Lane, Oracle

“The concept of being always on, always connected, is very powerful. … Companies are going to need to reach consumers across all the different transmission media and devices – across wireless, on cell phones, into cars, onto airplanes, into cabs, into the home and TV set. … It’s not just the message – now you’ve got a connection, what do you do with that?”
Marc Andreessen [Mosaic, Netscape, Loudcloud]

Anne Busquet/ American Express
Not : “Age of the Internet”
Is:

“The Web enables total transparency.
People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business

!

“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group

SWA
Simple!!!!!!!!!!!!
(customers call because the process is so easy they can’t believe they’re done)
30% of revenues directly from site
(vs. 6% for others)
Source: Business Week (09.00)

“One cannot be tentative about this.
Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.”
Jack Welch [07.00/ Forbes.com
]

“We’ve put the word out to all of our suppliers: by the end of the year [2000] we’ll only do purchasing over the Internet.”
John Paterson, C.P.O., IBM
[$50B from 18,000 suppliers]

WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web /B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything as next door neighbor

Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

Message: There is no such thing as an effective B2B or
Internet-supply chain strategy in a low-trust, bottleneckedcommunication, six-layer organization.

“Ebusiness is about rebuilding the organization from the ground up.
Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness. …
“In a true ebusiness, customers can come to your Website and evaluate products, be connected to the supply chain to get commitment for delivery and pricing. It also includes all the tangential services like billing and customer service, which should be automatic and simultaneous.”
Ray Lane, Kleiner Perkins

“There is no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much practice,” said the Queen. “When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”
Lewis Carroll

I’net …
…

Bob Nardelli,
GE Power Systems

“ENRON operates networks throughout the world to develop and enhance energy and broadband communication services. Networks, unlike vertically integrated business structures, facilitate the flow of information and expertise. We can spot market signals faster and respond more quickly. Networks empower individuals, freeing them to craft innovative and substantive solutions to customer problems. Networks are the foundation of our knowledge-based businesses, and they provide exceptional returns and value for our shareholders.” from the 2000 Annual Report

Ann Livermore, Hewlett Packard

09.11.2000: HP bids
$18,000,000,000 for
PricewaterhouseCoopers
Consulting bus!
(31,000 bods)

Message: Survivors will move all their operations to the Web. Now. Web =
Encompassing
… or else.

Brand Outside
Strategy 3 :

All Equal Except …
“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.
Design is the only thing that differentiates one product from another in the marketplace.”
Norio Ohga

“What’s imperative is the creation of a style that becomes a culture linking you to the community. You can only do that through good design.”
– Anita Roddick
Source: Design Council [UK]

“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.
of a manmade creation.”
Steve Jobs

Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects

The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com
…
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999

Design Transforms even the
[Biggest] Corporations!
…
“the champion of
America’s new design democracy”
(Time ) “Marketer of the Year 2000”
(Advertising Age)

Design “is” … WHAT &
WHY I LOVE.

I
my ZYLISS
Garlic Peeler!

Design “is” … WHY I
GET MAD.

Design is never

Hypothesis:
DESIGN is the principal difference between love and hate!

THE BASE CASE: I am a design fanatic. Personally, though not “artistic,” I’m a cool-stuff guy. I love what
I love and I hate what I hate. [Openly.] But it goes
[much] further, far beyond the personal. Design has become a professional obsession.
I - SIMPLY – BELIEVE THAT DESIGN PER SE IS
THE PRINCIPAL REASON FOR EMOTIONAL
ATTACHMENT [or detachment] RELATIVE TO A
PRODUCT OR SERVICE OR EXPERIENCE.
Design, as I see it, is arguably the #1 determinant of whether a product-serviceexperience stands out … or doesn’t. Furthermore, it’s “one of those things” … that damn few companies put – consistently – on the front burner.

Message:
“Services” are Not Intangible!
You “give off” hundreds of design cues … daily!
YOU ARE A DESIGNER!

First Steps: “Beauty Contest”!
• Select one form/document: invoice, air bill, sick leave policy, customer returnsclaim form
• Rate the selected doc on a scale of 1 to 10
[1 = Bureaucratica Obscuranta/ Sucks; 10
= Work of Art] on three dimensions:
Beauty, Grace, Clarity
• Re-invent!
• Repeat, with a new selection, every 15 working days.

Design Rules!
Palm Beach County’s U.C.B.
*
[*Utterly Confusing Ballot]

Message: Design is the wellspring of branding.
Great design takes guts and is “soul deep.”

Brand Outside
Strategy 4 :

Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre
& Every Business a Stage

“The [Starbucks] Fix” Is on …
“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home.
It’s the place our customers come for refuge.”
Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!”
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”
Harley exec, quoted in Results-based
Leadership

“Car designers need to create a story . Every car provides an opportunity to create an adventure .
…
“The Prowler makes you smile .
Why? Because it’s focused . It has a plot , a reason for being, a passion .”
Freeman Thomas , co-designer VW Beetle; designer
Audi TT

Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Passion

Plot
Williams Sonoma = 5 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Garnet Hill = 9
L.L. Bean = 4 [was 9+]
Colonial Williamsburg = ?

The “Experience Ladder”
Experiences
Services
Goods
Raw Materials

1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods economy): $2.00
1970: Bakery-made cake (service economy): $10.00
1985: Party @ Chuck E. Cheese
( experience economy) $100.00

Message : “Experience” is the “last 80%.”
“Experience” applies to all work!

Brand Outside
Strategy 5 :

?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%

????

Riding Lawnmowers

48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed

Women … 50+%
(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education.
Source: Business Week; Jupiter Communications

New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)

1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42 M

Yeow!
1970 … 1%

1!
*
[* No shit!]

Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities

FemaleThink/ Popcorn
“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

“Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are.
You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. … For a man, ignoring the price tag is almost a sign of virility.”
Paco Underhill,
Why We Buy*
(*Buy this book!)

Women and Healthcare
Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care employees].
Source: Patricia Braus, Marketing Healthcare to Women

Women and Financial Advisors
Women want … a plan, to be listened to, to be taken seriously , to read about it, to think about it.
Women do not want … an in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Source: Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC
Davis
(Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

Marketing to Women: Help Them
Save Time!
80% … work
86% … cook
58% … run errands with kids
38% … take child to school
21% … go to the gym
21% … take outside classes

How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done indicates that women really care about the relationship with their vendor.”
Robin Sternbergh/ IBM

Read This Book …
Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,
‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”
EVEolution

What If …
“What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?”
“What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women reenter the workforce with today’s skills?”
EVEolution

“Women don’t buy brands.
Faith Popcorn , EVEolution

Not!!

Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!

[PLEASE:
THINK ABOUT IT!]

27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3 rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today.
Dare I say it as a long-time Palo
Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters

“If we are single, they say we couldn’t catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him.
If we are widowed, they say we killed him.”
Kathleen Brown, on the joys of female political candidacy

Message: WHAT AN
[overlooked]
OPPORTUNITY!
Please pay attention.

Brand Outside
Strategy 5A :

Subject: Marketers & Stupidity
*18-24: XFL

Subject: Marketers & Stupidity

2000-2010 Stats
(55-64: +47%)

Aging/“Elderly”

Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access …

“Such a critical mass of older women with a tradition of rebellion and independence and a way of making a living has not occurred before in history.”
Gerda Lerner, historian

Message: WHAT AN
[overlooked]
OPPORTUNITY!

Brand Outside
Strategy 6 :

“Imagine a world where a citizen could search the globe to assemble ‘my government,’ the ultimate in customized, customer-centric services. Health care from the Netherlands, business incorporation in
Malaysia …”
Don Tapscott

Source: Headline, AOL, 01.26.01

Source: Headline, Money & Medicine, New
York Times (12.06.00); cited are specialist companies such as eBenX and Vivius of Minneapolis

The control revolution.
The potentially monumental shift in control from institutions to individuals made possible by new technology such as the
Internet. The conflict over such change between individuals and powerful entities
(governments, corporations, the media).
Source: Introduction, The Control Revolution,
Andrew Shapiro

Announcing Cingular. In the hope that every single person experiences the sheer joy of self-expression.
Source: ad, for Cingular Wireless

“Greater opportunity for women is probably
in the last century.”
Andrew Sullivan, The New Republic

“Savior for the Sick” vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00

“Online Medical Records
Seen Empowering
Patients”
Source: Headline, Boston Globe,
07.31.2000, re 1K docs and 700K patients @ CareGroup

drkoop.com:

THE FUTURE: Patients Rule!
Control Over Aging! [M&F Cosmetic Surgery, Viagra]
Targeted Therapies = High Expectations
The Internet! [meds, expert consultation, infoknowledge incl. outcome data & own recs, interaction with peers & docs, awareness that experts aren’t]
Alt Therapies! [more visits, some insurer recognition]
Awareness [medicine as front-page news, ads]
Boomers! [#s, $$$, Ethos of self-control]
Prevention/Wellness
HMO [no-choice] Revolt
“Age of Talent”
[Be nice, boss!]
Speed! [surgicenters, out-patient, self-admin regimens]

The “Specialist Syndrome” … and the [OVERWHELMING] Case for Patient Self-determination
Lisa Gubernick gets 8 [significantly
different] opinions from 8 docs re her back pain [Wall Street Journal:
10.06.00]

“The
is not simply cash. It becomes a kind of ticket to self-discovery and selfexploration.”
Muhammad Yunus

Sooooo …
Is your strategy centered around customer-client empowerment & selfdetermination?
Hint: This means letting go of traditional sources of power!

Corporate Resistance to “It”
“It all goes back to fear of losing control!”
The Cluetrain Manifesto

Message: We are in a
“People’s
[customer/ patient/ citizen/ etc.]
Revolution.”

Brand Outside
Strategy
7
:
BRAND

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions to how we work with others.
Companies will thrive on the basis of their stories and myths.
Companies will need to understand that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies

“Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voila, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how clever. WHAT IS MY MISSION IN LIFE? WHAT
DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER
THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment

Brand = You Must Care!
“Success means never letting the competition define you.
Instead you have to define yourself based on a point of view you care deeply about.”
Tom Chappell, Tom’s of Maine

[these days]
TP to Client

Jesper Kunde’s Challenge:
All business processes should be aligned with the
Brand/Value Promise.

Message: Branding is
personal. Branding is
integrity. Branding is
what I care about and
why it matters.Branding
can’t be faked. Branding is a systemic, 24/7 affair.

Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership

Brand Leadership
Passion Rules!

“Leadership is a performance.
You have to be conscious of your behavior, because everybody else is.”
Carly Fiorina

FDR

Gandhi

Brand Leadership!
“A key – perhaps the key – to leadership is the effective communication of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership

Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)

Brand Leadership:ENTHUSIASM RULES!
Ben Zander:

Napoleon

Lou Cannon, George (08.2000)

Message: Leadership is all about love!
[Passion,
Engagement, Great Causes, Shared
Adventures, Growth.]