TRAINING/HR: Own the BRAND! (Damn it!) Tom Peters/06.18.01 1. ARE YOU AT THE HEART OF THE BRAND PROMISE? 100% OF THE TIME? MantraM3 Talent = Brand 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 Source: Ed Michaels et al., The War for Talent “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 “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 Companies will thrive on the basis of their stories and myths. Companies will need to understand to how we work with others. that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies A&P Fun in the Sun Store Edgartown MA: DO THE EMPLOYEES BUY THIS ACT ? HR Colleagues: YOU—not “marketing”— “OWN” THE “BRAND PROMISE”! (If you wish.) Titles! Manager Human Capital Assets or Manager Manager HRIS to Employee Marketing* *IHRIM.link (2-3.2001) “WHO ARE WE?” WHAT’S OUR STORY? “ WHY DOES IT MATTER TO THE CLIENT?” “EXACTLY HOW DO I PASSIONATELY CONVEY THAT DIFFERENCE TO THE CLIENT ” Message: REAL Branding is personal. REAL Branding is integrity. REAL Branding is consistency & freshness. REAL Branding is the answer to WHO ARE WE? WHY ARE WE HERE? REAL Branding is why I/you/we [all] get out of bed in the morning. REAL Branding can’t be faked. REAL Branding is a systemic, 24/7, all departments, all hands affair. 2. Consider: You Could Be Source #1 of Market Cap Enhancement. 11 September 2000 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business! [“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett-Packard] HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Etc. … Etc. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. Sites to 6,000 NA dealers) “ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec “Department Head” to … Managing Partner, HR Inc. eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Heroic HR* B2E [Bus. To Employee] like B2C HCAM [Hum. Cap. Asset Mgt.] Mindset Brand HR Employee Portal [not HR Portal]/ Common Employee Home Page Ldr. for Knowledge Mgt. & Workgroup Collaboration Web-based HR Transactions Etc. *Marc Miller, IHRIM.link (6-7.2001) “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! Maybe one [or more] of your “PSFs” becomes the tail that wags the dog called Market Cap????? [E.g.: HR-ISCustomer Service] 3. Become Member #1 of the TDFT/Talent Development Fanatics Team. “When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH “We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, CEO, Enron From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent (05.17.00) Message: Some people are better than other people. Some people are a helluva lot better than other people. Sports Franchise GM Model 24/7: 33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver—0. Tom Kelly—0. Jim Leyland—0. Walter Alston—1AB. Tony LaRussa—132 games, 6 seasons. Tommy Lasorda—P, 26 games. Sparky Anderson—1 season. “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) What gets measured gets done. What gets paid for gets done more. What gets paid a lot for gets done a lot more. “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) Enron COO: Louise Kitchen, F, 29; created EnronOnline as “Skunkworks” “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 Women’s Strengths: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment > top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value interpersonal & technical skills, group & individual contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity Source: Judy B. Rosener, America’s Competitive Secret The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”! 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 “Boys are trained in a way that will make them irrelevant.” Phil Slater 4. Diversity PAYS. BIG TIME. “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 5. Training/HR [Writ Large] Is a/the Primary Talent Attractant. “New Economy changes how firms treat layoffs” Headline, USA Today (03.19.2001) New World of Work < 1 in 10 F500 #1: Manpower Inc. Freelancers/I.C.: 16M-25M Temps: 3M (incl. CEOs & lawyers) Microbusinesses: 12M-27M Total: 31M-55M Source: Daniel Pink, Free Agent Nation “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 “You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende Minimum New Work SurvivalSkillsKit2001 Mastery Rolodex Obsession (vert. to horiz. “loyalty”) Entrepreneurial Instinct CEO/Leader/Businessperson/Closer Mistress of Improv Sense of Humor Intense Appetite for Technology Groveling Before the Young Embracing “Marketing” Passion for Renewal Brand You, Big Time! I AM AN ARMY OF ONE We are the Army of One’s Supply & Engineer Corps! HR: 6. Pursue/Train/ Encourage “WEIRD.” “Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” Kevin Kelly, New Rules for the New Economy 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 ?????: Get better organized to do good work vs. Get better disorganized to do great work “But don’t we need some grout between the tiles?” 7. Do You EMBRACE—or Fight— the WCR/White Collar Revolution? 80,000? 108 X 5 vs. 8 X 1* * 540 vs. 8 (-98.5%) IBM’s Project eLiza! 8. Can You Imagine HR/Your ENTIRE Corporation Online/INTERNET Standard? 9. What Does ENRON Have to Teach Us? ORACLE? 90+% 10. Goal: of Training/Learning/HR EXPERIENCES Online/I’net by 01.01.2003. 11. Are You a NO-BULL Candidate for … LEADER OF THE E-BUSINESS TEAM? WebWorld = Everything Web as a way to run your business’s 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 “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] 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.” Ray Lane, Kleiner Perkins “There’s 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 … allows you to dream dreams you could never have dreamed before! … 12. HR/Training Must Be Employee-driven. “H.R.” to “H.E.D.” ??? Human Enablement Department “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” “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 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 Anne Busquet/ American Express Not: “Age of the Internet” “Age of Customer Control” Is: Amen! “The Age of the Never Satisfied Customer” Regis McKenna “HR Employee Self-Service/ ESS” John Pask/IHRIM “Managing Benefits: Let Workers Do It” Source: Headline, Money & Medicine, New York Times (12.06.00); cited are specialist companies such as eBenX and Vivius of Minneapolis “Systems supporting one-toone employee relationships will add competitive advantage.” “Employees expect far more access and control over their own information.” Source: IHRIM.link (2-3.2001) *Business to Employee (IHRIM.link) “Customer Service” is DEAD. “One-to-One” is DEAD. Welcome to: ???? [??? = We live together in seamlessresponsive harmony with all Members of the Value Chain. We Create together. We Fulfill together. We Learn together. We Adjust together. All old categories— which imply separation and linearity and hierarchy and do-it-to-themism— must die.] 13. T/D > 1.0 3 Weeks in May “Training” & Prep: 187 “Work”: 41 (“Other”: 17) 1% vs. 367% Divas do it. Violinists do it. Sprinters do it. Golfers do it. Pilots do it. Soldiers do it. Surgeons do it. Cops do it. Astronauts do it. Why don’t businesspeople do it [very much]? “We” are not serious! Conclusion: 14. Drop “Training.” Embrace LEARNING. You “train” rats and rhesus monkeys. Humans [Esp. in “Intellectual Capital” Jobs] … LEARN. 15. Drop “Learning.” Embrace FORGETTING. Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 are in ’87 F100; the 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market “Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.” Clayton Christensen, The Innovator’s Dilemma “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) 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] Ge Way DYB.com 16. How Do You “Train” for AMBIGUITY? <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th century (“the ‘Singularity,’ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”) Ray Kurzweil, talk april2001 “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01 “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 “We are in a brawl with no rules.” 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!) 17. All It Takes Is One! Topic: Boss-free Implementation of STM /Stuff That MATTERS! World’s Biggest Waste … Selling “Up” THE IDEA: Model F4 Find a Fellow Freak Faraway Heart of the Matter F2F!/K2K!/ 1@T/R.F!A.* *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim. 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 Joe J. Jones 1942 – 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T HIM! LET 18. Quit Bitching. MASTER POLITICS! Message: It’s Community Organizing, stupid! See: Saul Alinsky’s Rules for Radicals Politics Rules! Project Team Golden Leadership Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic. It AIN’T about the science. It’s NEVER about the science. It’s ALWAYS about the PASSION for the IDEA. Message to “scientists”: 19. ALL HR/Training Must Be WOW! (Measure It.) “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, 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 The Raw Material … The WOW Project! “Reward excellent failures. Punish mediocre successes.” 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 Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!) “Learn not to be careful.” Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa) 20. Become DESIGN Obsessed! “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 Design is the fundamental soul meaning of design. of a man-made creation.” Steve Jobs Design “is” … WHAT & WHY I LOVE. LOVE. I LOVE my ZYLISS Garlic Peeler! Design “is” … WHY I GET MAD. MAD. Wanted: Dead [preferably] or Alive: THE DESIGNER OF MY RADIO SHACK PHONE. Major Reward! Design is never neutral. DESIGN is the principal difference between love and hate! Hypothesis: 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-service-experience 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 for Delight book title, Tate Modern 21. Become an EXPERIENCE Fanatic! “Experiences are as distinct from services as services are from goods.” 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 Plot 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 1990: Party @ Chuck E. Cheese (experience economy) $100.00 Message: “Experience” is the “Last 80%” “Experience” applies to all work! HP Revisited PWC Consultants lead Business Re-invention Process (“Experience Economy”) Fabulous Customer Service (“Service Economy”) Terrific Servers (“Goods Economy”) “Experience”: Home to [tomorrow’s] Market Cap! 22. Understand the New Market. LEAD! (Damn it.) ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Consumer Electronics … 51% Cars … 60% (90%) All consumer purchases … 83% Bank Account … 89% Health Care … 80% $4.8T > Japan 9M/27.5M/$3.6T > Germany Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold 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 “ ‘Age Power’ will st rule the 21 century, and we are woefully unprepared.” Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Subject: Marketers & Stupidity “It’s 18-44, stupid!” Subject: Marketers & Stupidity “18-44 is stupid, stupid!” Or is it: 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!” No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems” 23. Are You Ms. TECHNICOLOR? 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 enough weird people in “Are there the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01) 24. Are You a Certified RADICAL? “Create a ‘cause,’ not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1: Charles Schwab) “I am a dispenser of enthusiasm.” Ben Zander: 25. Heed Indefatigable “indefatigable” … “courage” … “love the thrill of the hunt” … “must not have just a desire to win, but a need to win” … “enjoy doing things they don’t know how to do” … “seek out discomfort zones in order to gain new experiences” … “willing to piss people off” … “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES” “Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.” “Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.” “I don’t know.” Karl Weick “The leader who says ‘I don’t know’ essentially says that the group is facing a new ballgame where the old tools of logic may be its undoing rather than its salvation. To drop these tools is not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in the moment, capability for fascination, awe, novel words and empathy.”—Karl Weick YOU CAN’T KEEP UP! YOU DON’T HAVE THE ANSWERS! BossMessage2001: “If things seem under control, you’re just not going fast enough.” Mario Andretti “You must be the change you wish to see in the world.” Gandhi “I’d rather regret the things I have done than the things I have not.” Lucille Ball “If you ask me what I have come to do in this world, I who am an artist, I will reply, I live my life out loud.” am here to Emile Zola Have you changed civilization today? Source: HP banner ad “Let’s make a dent in the universe.” Steve Jobs