TOM PETERS’
LESSONS IN LEADERSHIP
Marriott Durham
Civic Center
2 May 2000
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
1 Year = 1.5 Wal*Marts
03.27.99: $167B
03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
No Wiggle Room!
“Incrementalism is
innovation’s worst
enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be known
as the ‘King of the
Tinkerers.’ ”
CEO, large financial services company
(New York, 5-99)
64/24
Goal?
Welcome to the Land of the True Believers!
“We have the ability to turn the
economy upside down, to
enhance lives, and to drive
civilization forward.”
Michael Saylor,
MicroStrategy
“It means nothing
less than the total
reinvention of
this company.”
Jacques’ New New Ford
Ford + MSN CarPoint
Ford + Yahoo!
Ford + Oracle
Ford + HP/MCIWorldcom
Etc.
Etc.
Tony(White)-World
Perkin-Elmer to PE Corp./
Sell “core bus.”/ Dump NAME!
Now: PE Biosystems,
Celera Genomics (Craig Venter)
$1.5B (’95) to $24B
TP2000: A Broken Record
GE Power Systems
Anheuser Busch
FitLinxx
Yellow Freight
Fidelity
Time Inc.
Web
Total Reinvention
Consumer Control
Speed
Terror/Opportunity
Brand Power
“There is probably going
to be more confusion in
the business world in the
next decade than there
has been in any decade
in history.”
Steve Case (2-00)
“We are in a
brawl with no
rules.”
Paul Allaire
S.A.V.
T.T.D.s
The next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do.
These are by and large shorthand
forms of training exercises I use.
Also: Most of these T.T.D. slides have
accompanying Notes.
(See following slide.)
Tom Peters
T.T.D./True or False:
“incrementalism”
VERSUS
“innovation”?
Notes Page
• This is a daunting issue. There is no “right
answer.” But it merits constant, conscious
debate. Consider the value of incremental
change. [Kaizen, etc.] And discuss whether or
not this thwarts “BIG” initiatives aimed at
wholesale reinvention.
• Also: Consider … “Can we do both?” [I’m not
sure.] P.S.: This crucial issue holds for Finance
Departments as much as Product Divisions. And
it holds for the smallest and newest of
businesses! THIS DEBATE IS WORTH LOTS OF
TIME! KEEP IT PRACTICAL!
Seminar Y2K
Brand Everything:
Distinct or Extinct!
Part I: Forces @ Work
Part II: Brand Inside
Part III: Brand Outside
Part IV: Brand Leadership
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
Brand Defined
Distinction
Excellence
Emotional “Signature”
Trustworthiness
Consistency
Shorthand
Forces @ Work
The Destruction
Imperative!
Forget > Learn
“The problem is never
how to get new,
innovative thoughts into
your mind, but how to get
old ones out.”
Dee Hock
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
“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.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
“We chose not to do a
discounted cash flow
analysis of their future
earnings. We wanted their
talent and we wanted
their intellectual
property.”
Art Reidel, CEO, Pharsight
“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
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
G.M. = The Recruitment and
Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets
on Projects. [Period!]
Silicon Valley Success Secrets
“Pursuit of risk”: 4 of 20 in V.C.
portfolio go bust; 6 lose money; 6
do okay; 3 do well; 1 hits the
jackpot
Source: The Economist
“Steve Ross had a
wonderful philosophy:
People get fired for
not making mistakes.”
Bob Pittman
“R & D”
Intel’s venture fund:
275 investments, $3.5B
Source: Fast Company (12-99)
Net World!
Act now. Analyze
later.
Avram Miller
[TP to Chain Owner …
“Do 5 deals before you go
home!”]
T.T.D.
Discuss the G.M./V.C.
“strategy” as it applies to
your unit.
Notes Page
• What do “G.M.s” do? [Invite one to talk to
your group.] Do you do what they do? If
not, why not? How about a “G.M.
Strategy”?
• Repeat the above for the Life of a Venture
Capitalist.
T.T.D.
Evaluate your portfolio of
projects [and people]: Are
you placing enough
interesting [long shot?]
bets?
Notes Page
• Be brutally honest!
• Hint: This holds for you and me as
individuals as well as for our unit.
C.E.O.
to
C.D.O.
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth,
Lockheed, Coca-Cola
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)
“ALL OF THESE ‘CONVERSATIONS’
TODAY ABOUT ‘THE WEB’ WILL
APPEAR SO BLOODY DAMN SILLY AND
PEDESTRIAN TEN … FIVE? … THREE?
… YEARS FROM NOW.”
— Tom Peters (11-99)
P.S.: Read
Ray Kurzweil’s The Age
of Spiritual Machines: When
Computers Exceed Human
Intelligence
“Researchers say they have found
a way to mate human cells with
circuitry in a ‘bionic chip’ … The
tiny device – smaller and thinner
than a strand of hair – combines a
healthy human cell with an
electronic circuitry chip.”
AP/AOL/02-00
T.T.D.
How do you rate as a …
C.D.O.?
Notes Page
• So … what … exactly … are you doing to
DESTROY what you [and yours] are
today? List every Project that aims to
ATTACK today’s “culture” and
assumptions. Be specific!
Brand Inside
PSF 1:
Brand Org!
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar
Revolution!
ERP, ECM, Web, Etc.
IT’S THE GIANT SUCKING
SOUND
OF SLACK BEING
EXTRACTED FROM
THE GLOBAL ECONOMY!
“The coefficient of friction
associated with the grunge
of business is amazing!”
Michael Schrage
Cemex and FDX!
CCC Information
Services!
Buzzsaw.com
Builders, Owners, Architects,
Contractors, Suppliers
$4T industry
5,300 commercial bldg. projects’
specs on-line; +70 per day
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
T.T.D.
Discuss: Is my “90% in
10+ years” extreme?
Notes Page
• I admit that some say I’m over-the-top
here. I honestly don’t think I am. Try and
imagine your HR/Whatever Dept. fully
automated with numerous tasks
outsourced … to India or Ireland.
“Assetless
Company”
J.B.
RR on Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon/WebMD
* ’twixt docs, patients, insurers and providers;
$275B of $400B in waste; source: Michael Lewis,
The New New Thing
[ Incidentally …
CEO Jeff Arnold
Age: 30
First Start-up: Age 24]
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
12/31/00 (per Newsweek 04.24.00)
75% of U.S. universities will have on-line
offerings/ 5.8 million students
“Unbundling” profs’ jobs (star lecturer,
facilitator)/ Repackage “content”
as multi-media “event”
AAUP is angry! (Good news!)
355 studies: Equal results!
(and one teachers union study
that disagrees!)
T.T.D.
Does your vision
involve a critical
position in the
industry’s
Spider’s Web?
Notes Page
• Try to depict your industry … or your
department … with all its
interconnections. E.g.: What if every task
you perform became a “for profit” task in
which you became an “industry expert”?
E.g.: As an HR Dept. in the utility industry,
what if you started the premier dot.com
industry Talent Bank?
PSF 1.0
Professional Service
Firm Conversion Kit /
Release 1.0
Why are there no
books on how to create
a “Cool, Rocking,
WOW-producing
Finance Department”?
PSF 1.0
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
Credo
“WORK
WORTH
PAYING FOR”
T.T.D.
Sooooo …
Is It?
Notes Page
• What is the “bottom line” – WORTH
PAYING FOR – for every project your unit
[or you] has going?
“support function” / “cost
center” / “bureaucratic
drag”
or …
“Rock Stars of the ‘Age of
Talent’ ”
NAPM: Not “Purchasing”!
NAPM: Not “Supply Chain Mgt.”
NAPM =
T
* otal
TE/IR!*
Enterprise/Industry
Reinvention!
You are the
Rock Stars
of the
B2B Age!
[I.e.: Welcome to the Y2K
New Orleans Jazz and
Real Cool Purchasing
Dudes Festival!]
Message to NAPM:
You are
Re-invention
Evangelists!
“Real” PSF …
–Think Inc. (Mindset = Step No.1!)
–Clients rule! / Engage Clients in
deep dialog/ “Join us in an
Adventure” / Fire duds!
–Work = WOW Projects (100%!)
–Embrace the Politics of
Implementation!
–Practice serial monogamy!
–Master “the economics”! (WWPF!)
“Real” PSF …
–WE HELP PEOPLE!
–Co-habit with the Client!
–Create a Culture of Urgency!
–Love thy Support Staff!
–You need a Methodology! /
Obsess on R&D!
–BECOME A “CONNOISSEUR
OF TALENT”!
Real PSF …
WE OWN THIS PLACE!
THIS IS COOL STUFF!
WE ARE THE WORLD!
The “7Ps” of PSF 1.0
Projects!
Passion!
Provocation!
Partnership!
Politics!
Professionalism!
Performance!
T.T.D.
Use the prior slide as a
checklist relative to every
activity [project] your unit
is working on.
C.I.O.
to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
T.T.D.
Compare: “Department
Head” versus
“Managing Partner,
Finance Inc.”
Notes Page
• See our book, the Professional Service
Firm50, re the differences between a
traditional “Dept.” and a full-fledged
“PSF.” Our “The Work Matters” manifesto
– at tompeters.com – also covers this.
Brand Defined
Distinction
Excellence
Emotional “Signature”
Trustworthiness
Consistency
Shorthand
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
“How long does
‘culture change’
take?”
What Do I “Do” First?
One Minute
Excellence!*
*Thomas Watson
Culture Change is not “Corporate.”
Culture Change is not a “Program.”
Culture change does not take “Years.”
Culture Change does not start “Today.”
Culture Change starts Right
Culture Change
Now!
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
Brand Inside
PSF 2:
Brand Work!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget …
who cares?”
anon. seminar participant (4/99)
“You really got to me. So
many of our information technology
projects take on a life of their own,
and I know they’ll never end up as
more than ‘mediocre successes.’ ”
CEO, F100 financial
services company (10-98)
WOW Project Anatomy
I. Create!
II. Sell!
III. Implement!
IV. Exit!
I. Create!
Reframe!
THERE ARE NO “SMALL” PROJECTS!
Observe & Record!!
Head for the trenches!
You gotta love it!
Measure: WOW!, Beauty, Raving Fans,
Impact!
Build a no-baloney Business Plan
Create community. Now!
Obsess on … the End User. Now!
Reframers’ Rules:
Rule 1: Never accept an
assignment as given!
Rule 2: You’re never so powerful
as when you are “powerless”!
Rule 3: Every “small” project
contains the entire enterprise
DNA!
T.T.D.
Examine that “small”/
“annoying” project you’re
working on. Can it be re-cast as
a WOW/ Culture Change
Project? What are the hidden
assumptions about customers/
suppliers/ employees?
Notes Page
• I am adamant: Every project can be made
into a “big deal” if your head is in the right
place. So … now … COMPLETELY REINVENT THAT “SMALL” PROJECT YOU
ARE WORKING ON! No bull! E.g.: What
about a “Memorial Day Employee Picnic
that signals a whole new attitude toward
our staff”?
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
E.g.: WOW Scale
1. … Dull as dishwater
.
5. … Gets the job done
.
7. … “Good work!”
.
10. … A serious “Braggable”!
T.T.D.
MEASURE … NOW
… P-L-E-A-S-E!
Notes Page
THIS IS MY #1
GOAL FOR THE
WHOLE DAMN
SEMINAR … THAT YOU [AND
• NO BALONEY:
YOURS] WILL MEASURE EVERY PROJECT
AGAINST MY FOUR KEY CRITERIA: WOW!,
BEAUTY, RAVING FANS, IMPACT.
• [P-L-E-A-S-E.]
[Just Say “No” to …
S-t-r-e-t-c-h]
WOW Project “Acid Test”
Can you explain it with zest to your 14-year-old?
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
II. Sell!
Master “The Pitch”!
Build Buzz. Consciously.
Network maniacally!
Preach to the choir!
Forget your enemies. [Surround and
marginalize!]
Money kills!
SELL, SELL, SELL!
III. Implement!
- Live, eat, sleep … Quick Prototype!
- Play!
- Keep on recruiting! (Sell!)
- Obsess on the End User Community!
(Sell!)
- Become a Milestone Maniac! / a Timeline
Tyrant! / a List Freak! / find Ms. Last 2%!
- Appoint a Marketing Director!
- Keep the WOW! front and center!
Culture of Prototyping
“Effective prototyping may be
the most valuable core
competence an innovative
organization can hope to
have.”
Michael Schrage
“I view models and
prototypes as the
battleground for thoughts
and behaviors.”
Michael Schrage
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
T.T.D./ Prototyper’s Laws
Define a small, practical test of something on a
page or less of text. Now.
Gather “found” materials … on the [very] cheap.
Find a/one partner-“customer” who’ll provide a
test site.
Set a very tight deadline of about 5 days for the
next concrete step.
Conduct the test! Debrief A.S.A.P.
Set the next test date. Now. [No more than 5
days hence.]
Notes Page
• The idea is to establish a “rhythm of
prototyping” that defines every project.
T.T.D./ Secret No. 1: Forget “selling up”!
Go horizontal: Find a (one!) “line” ally
in “the Boonies”!
Secret No. 2: “Powerless” allies are
Cool!
Secret No. 3: Become a Prototyping
Maniac!
Secret No. 4: Embrace Politics /
“Community Organizing”!
Secret No. 5: Passion Rules! Get your
story in shape!
Notes Page
• Main Idea: YOU ARE NOT “POWERLESS.” Seek
out allies in strange places … and get going! DO
NOT WASTE TIME “SELLING UP.”
• Attitude: You are the Gandhi/King of your
“mission.”
• So: IDENTIFY THE FOLKS YOU WANT TO PLAY
WITH RE THAT INCREDIBLY COOL IDEA YOU
HAVE!
K2K!
Pause …
Implementation 101
5,000
miles for a 5
min. meeting.
Mark McCormack:
DON’T
FORGET YOUR
THANK YOU
NOTES!
ESP to TJP:
Paradox No. 1, Circa 2000
TRUST*
*Now … more than ever!
“It was much later that I realized Dad’s
secret. He gained respect by giving it.
He talked and listened to the fourthgrade kids in Spring Valley who shined
shoes the same way he talked and
listened to a bishop or a college
president. He was seriously interested
in who you were and what you had to
say.”
Sara Lawrence-Lightfoot, Respect
The Sweet Smell of …
“You can ‘smell’ caring
[engagement, respect]
from a mile away!”
Seminar Participant, London (12/99)
“Bottom Line”*
SOFT IS HARD**
*Yes, in The Age of the Internet
**In Search of Excellence, 1982
IV. Exit!
“Sell out!” / Embrace “The Suits”!
Recruit a passionate Ms./Mr.
Follow-up!
Seed your freaks into the
mainstream!
Celebrate!
Exit!
SOOOO … HOW MANY OF
YOUR COLLEAGUES ARE
“BACK HOME” AT WORK ON
NO-BALONEY …
WOW* PROJECTS!
* WOW = Will be remembered fondly/
bragged about 5+ years from now
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
T.T.D.: Now!
– List all projects
– Carefully describe a “WOW Outcome” for
you and the Client
– Score (!) all projects on WOW, Beauty,
Impact, Raving Fan-hood
– Pick one project with a high combined score
– Draft a one-page New Description that
emphasizes WOW, Beauty, etc.
– Circulate and edit … for three days
– Reduce to 5 bullet points
Notes Page
•DO IT!
•NOW!
1) Turn ignition key.
2) Shift into drive.
3) Press foot firmly on the
throat of mediocrity.
Source: Mercedes ad
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
Characteristics of the “Also Rans”
“minimize risk”
“respect the chain of command”
“support the boss”
“make budget”
Source: Fortune on “most admired
global corporations” (10/26/98)
[We are not trying to “WOW you
up.”
We think you are/have WOW.
We are trying to give you
permission to be WOW.]
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
Brand Inside
PSF 3:
Brand You!
DISTINCT … OR EXTINCT!
“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
“If one quarter can’t make
the journey, that’s the way it
has to be.”
Carly Fiorina (1-00/Forbes)
Personal “Brand Equity” Evaluation
– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].
– My current Project is challenging me …
– New things I’ve learned in the last 90 days include …
– My public “recognition program”
consists of …
– Additions to my Rolodex in the last 90 days include …
–My resume is discernibly different
from last year’s at this time …
Ike’s World Book Page
And Yours?
They “Get it”?!
– stone mason
– electrician
– plumber
– tiler
– cabinet maker
– contractor
– blacksmith
– well driller
– blaster
– sheep shearer
– etc.
Icon Woman …
–Totally turned on by her work!
–“It” matters / a WOW Project!
–“It” is … COOL!
–“It” is … BEAUTIFUL!
–She is … in your face!
–She is an … adventurer!
–She is … CEO of her own life!
Icon Woman …
- She is … at least … a little funky!
–Her curiosity is … insatiable!
–She thinks screwups are …
as normal as breathing!
–She hangs out with some …
seriously rad Dudes!
–She is not God. She is not Bionic
Woman. She is … determined
to make a damned difference!
“Well-behaved
women rarely
make history.”
Anita Borg,
Institute for Women and Technology
Icon Woman Meets the Web …
– submits resume on the Web
– recruited on the Web
– hired on the Web
– trained on the Web
– creates and conducts projects with
virtual teams on the Web
– manages project and client
follow-up on the Web
– manages career/reputation-building
on the Web
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
R.I.P.
10 … Major job change [new area of
concentration]; major offsite
educational investment; extensive
sabbatical [oddball learning
experience of > 2 months];
exceptional community project
[presidency of fundraising drive, run
for school board].
R.I.P.
5 ... Extensive course work in oddball
area of passionate interest; major offthe-job activity [community
involvement, learn to play the cello,
study Chinese].
1 … Company training, as directed.
T.T.D./Your R.I.P.
IS IT … FORMAL?
IS IT ... WOW!?
Notes Page
• We think “R.I.P.s” are imperative! So …
please take these two questions seriously
and literally!
T.T.D./R.I.P.
Use by yourself.
Use with your mates.
Use [quantitatively?] as a
measure of departmental/ P.S.F.
renewal.
Use in formal eval process.
Notes Page
• The whole idea is to make “R.I.P.s” a/the
centerpiece – formally – of measuring unit
“freshness.” E.g.: SCORE EVERYONE’S
“R.I.P.” ON ITS BOLDNESS/WOW.
Training Y2K
Anytime, anywhere!
Whatever!
Concocted by the employee
[“Training Account”]
H.R. to H.E.D. ???
Human
Enablement
Department
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
When you love
what you do,
you’re alive.
jobs.com
T.T.D./Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
Notes Page
•THIS IS A BIG
DEAL. TAKE IT
SERIOUSLY. [“Yellow
Pages ads” are the centerpiece of our
formal Brand You training programs.]
[“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende]
[ T.T.D.: How About It?
Replace your current
evaluation process with
Yellow Pages ads.]
Notes Page
• NO BULL! Some of our Clients have gone
this far. And report stunning results. If you
can’t do this formally, try it informally.
Bill Parcels’ World/
Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
T.T.D./Cluetrain Manifesto
Relax!
Have a sense of humor!
Find your voice and use it!
Tell the truth!
Don’t panic!
Enjoy yourself!
Be Brave!
Be curious!
Play more!
Dream always!
Listen up!
Rap on!
Notes Page
• This is one tough standard to hold
ourselves to! Perhaps start by putting this
on a 5-inch x 7-inch card … and referring
to it several times a day.
PSF1, 2, 3 …
and The
Cluetrain
Manifesto
Magic!
[Inter]networked Markets
meet …
[Intra]networked Workers
Source: The Cluetrain Manifesto: The End of
Business as Usual
GET IT? The Character of the Web,
per The Cluetrain Manifesto …
Hyperlinked
Decentralized
Hypertime
Open, direct access
Rich data
Broken [no one owns it or controls it]
Borderless
“Hyperlinks subvert
hierarchy!”
The Cluetrain Manifesto
Corporate Resistance to “It”
“It all goes back to fear of
losing control!”
The Cluetrain Manifesto
“E-business is the
final nail in the coffin
for bureaucracy at
GE.”
Jack Welch/
GE Annual Report 2000
[ Words to Live By …
“Hierarchy is an
organization with its face
toward the CEO and its ass
toward the customer.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business]
Women and
new-economy
management …
Net Result …
Say goodbye to “command
and control.”
Say goodbye to hierarchy.
Say 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
[ … and women are
Market Opportunity #1]
Brand Inside
PSF 4:
Brand Talent!
Issue Y2K
The Great War
for Talent!
There is no “talent shortage” …
if …
you are a
GPTW*
*Great Place To Work
Alan Kay on
PARC’s Bob Taylor
“He was a
connoisseur of
talent.”
T.T.D./
ARE YOU?
Notes Page
• There’s perhaps no more difficult “test”:
AM I A NO-BALONEY CONNOISSEUR OF
TALENT? Use a quantitative measure.
A Connoisseur of Talent …
– Spends time on Talent!
– Becomes a student of Talent!
– Puts Talent “on the agenda”!
– Practices D.I.Y.
– Uses Plain English! (If you want “sunny” …
ask for “sunny”!)
– Creates Workspaces that foster energy,
entrepreneurship and creativity!
– Recruits from oddball places!/
Recruits Oddballs!
Axiom: Never hire
anyone without an
aberration in their
background. (Find the
One Ton Cookie Man!)
A Connoisseur of Talent …
– Recruits M.I. (Gardner: Logical-mathematical,
linguistic, artistic, musical, bodily-kinesthetic,
intrapersonal-self, interpersonal-others)
– Recruits arts!
– Becomes de facto C.D.O. (Chief Diversity Officer)
– Turns the pay scale upside down!/ Pays Talent!
– Rewards & Promotes all on Talent
Development Skills!
– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)
The NAESP …
Attributes of Those Who “Made” the 10th
Grade History Book
–Committed!
–Determined to make a difference!
–Focused!
–Passionate!
–Irrational about their life’s project!
–Ahead of their time / Paradigm
busters!
–Impatient! / Action Obsessed
Attributes of Those Who “Made” the 10th Grade
History Book
–Made lots of people mad!
–Flouted the chain of command!
–Creative / Quirky / Peculiar! / Rebels! /
Irreverent!
–Masters of improv / Thrive on chaos
/ Exploit chaos!
Attributes of Those Who “Made” the 10th Grade
History Book
–Forgiveness > Permission
–Bone honest!
–Flawed as the dickens!
– “In touch” with their followers’
aspirations
–Damn good at what they do!
??????????????????
“He grew his hair long, played
guitar in a rock band, chased
girls, got into trouble. At age 17
he was flogged by his house
master, who described him as
‘the most difficult boy I’ve ever
had to deal with.’ ”
Tony Blair*
*talk/May 2000
Just Say “No” to “Grout”!
Participant: “Don’t you need
‘grout’ between the tiles?”
“No!”
TP:
[med staff,
NFL Special Teams,waiters,
PFCs, cymbals player,
bit parts, waiters]
TP’s Ideal Job:
Head of Housekeeping!
“Conformity is the
enemy of freedom
and the jailer
of growth.”
J.F.K.
T.T.D.
Use the two Connoisseur of
Talent slides as a guide for
creating a Formal Talent
Development Plan
Notes Page
• Literally use the items on the two slides
as a formal check list to measure yourself
[quantitatively] against.
“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”
Yes!
Director of Bringing in
the Really Cool People
All You Need to Know?
Chief Evangelist For Really
Neat Stuff
Director Of Bringing In The
Really Cool People
T.T.D.
STEAL THESE
TWO JOB
TITLES!
Talent = Brand
Brand Outside
=
Brand Inside
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
Brand Outside
Context:
No “Commodities”!
In the Beginning …
“The audit has become a
commodity.”
Big 5 audit partner to TP
Quality Not Enough!
“Quality as defined by few defects
is becoming the price of entry for
automotive marketers rather than
a competitive advantage.”
J.D. Power
Quality Not Enough!
“While everything may be
better, it is also increasingly
the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
What’s Special?
“Customers will try ‘low cost
providers’ because the Majors
have not given them any clear
reason not to.”
Leading Insurance Industry
Analyst (10-98)
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
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
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
Aarrgh!
“Quality is conformance
to requirements, not
goodness.”
Phil Crosby
“When we did it ‘right’
it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Pretzel Crumb-less-ness Plus …
“The Ritz Carlton Experience
enlivens the senses, instills
well-being and fulfills even the
unexpressed wishes and needs of
the guest.”
from the Ritz Carlton Credo
“We want to create
waves of lust
for our product.”
Andy Grove (on the Pentium
Processor)
“You do not merely want to
be the best of the best. You
want to be considered
the only ones who do
what you do.”
Jerry Garcia
What Jerry Should
Have Said???
“You do not merely want to be the
best of the best, you want to be
considered in conformance with
requirements.”
Lust Hierarchy
Satisfy … Conform to
Requirements … Exceed
Expectations …
Delight! … WOW! … Lust! …
ONLY ONES WHO DO WHAT
WE DO!
Nirvana!
- Nordstrom
- Four Seasons
- Adirondack Guide Boat
- OXO
- Ziplocs
Why?
Cool!/Surprising!
Reliable!
Friendly!/Comfortable!
Aesthetically pleasing!
Consider …
What words and
emotions do you use to
describe the things
you love?
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 1:
Lead the Customer!
“The customer is a rear
view
mirror, not a guide to the future.”
George Colony, Forrester Research
“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 idea-led and
consumer-informed.”
Doug Atkin, partner,
Merkley Newman Harty
Early Customer Rejection
Post-Its [12 years!]
Chrysler Minivans
VCRs
Fax machines
FedEx
CNN
Heart-assist pumps
Etc.
Source: Fortune
Good = Bad/ 1 of 30,000
“We are crazy. We should do
something when people say it is
If people say
something is ‘good’, it
means someone else is
already doing it.”
‘crazy.’
Hajime Mitarai, Canon
“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
Benchmarking, Perils of …
“The best swordsman in the world doesn’t
need to fear the second best swordsman
in the world; no, the person for him to be
afraid of is some ignorant antagonist who
has never had a sword in his hand before;
he doesn’t do the thing he ought to do,
and so the expert isn’t prepared for him;
he does the thing he ought not to do and
often it catches the expert out and ends
him on the spot.”
Mark Twain
“Lead” customers!
K2K redux!
T.T.D.: Do You K2K?
Are you working with
[numerous] weird, far
out customers? [As
opposed to “biggest”
customers?]
Notes Page
• Trust me! You will be as Cool as your
Coolest Clients. Cool Clients co-invent the
future with us. Soooo … WHAT’S YOUR
COOL CLIENT PORTFOLIO LOOK LIKE?
[Hint: “Biggest” are rarely “coolest.”]
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
T.T.D./Sooooo…
Are you pushing your
customers? [Internal or
external.] ARE YOU
ENGAGING THEM IN A
JOINT VENTURE-JOURNEY
INTO TOMORROWLAND?
Notes Page
• No bull: Evaluate EVERY Client
Relationship. Is EVERY CP/Client Project a
“test”? That is, an effort to explore
Uncomfortable-But-Important-Stuff?
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Business!
Dell’s Web sales …
daily ?
$35,000,000.
2X = 100 days
(Internet traffic)
2X = 9 months
(network capacity)
Source: Red Herring (1-00)
Tomorrow Today: Cisco!
70%
Save $500M (service and tech
support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms ($1B?)
Cherry Picking
Vertical Markets
Plasticsnet.com: $370B;
sellers pay $5K to $8K for
“storefront”; 5% to 10% cut
Hook: community services
(database, catalogs, forums,
industry job bank, etc.)
The Motley Fool Secret?
“Strangers helping
strangers”
“Fools’ Logic,” IW
“Begin by filling the stadium. Then
offer more and more services.
Hopefully, as you add more on
top, the site becomes more
integrated with the work process,
until it is invaluable.”
Carl Bass, CEO, Buzzsaw.com
Message …
COMMUNITY!/
COMMUNITY
SERVICES!
Community …
Somewhat mediated, segmented
chat rooms (must be “managed”/ seeded)
User-friendly technical/ professional info
Industry “intelligence”
Some very timely stuff/ attractors
Hotlinks by the gazillion
(to professional and unrelated stuff)
Expert/ advisor opinions (info, chats, etc.)
Opportunity for users to build
own Web page
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
B2B
1999 – 2004: 50X
2004: $7.4 T
Source: GartnerGroup
(per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Auto parts supply “Co.”
$240B (+$500B)
I.P.O.
B2B = No.1
CarStation (auto-body shops),
ChemConnect (chemicals),
Collabria (commercial printing),
DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical
supplies), Portera (knowledge
workers), Etc., Etc., Etc., Etc.
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
[Jack on the Web’s “Naked Truth”
“You desperately want to have
enough technology in your
product offering, so that you don’t
end up being in a commodity
situation.”]
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
Shop in your
Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control of
my universe!
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
Control”
Patricia Seybold’s “Basics”:
The E-Customer Bill of Rights
Don’t waste my time!
Remember who I am!
Make it easy for me to order and
procure service!
Customize your products and
services for me!
Source: customers.com
T.T.D.: Message!
THE
CUSTOMER IS
IN CONTROL!
Notes Page
• Do you Joyfully “allow” the Customer to
lead you around by the nose? Is this truly
his/her site? Her/his “home”?
“Welcome
back, Tommy!”
[ Cases: Customers.com
American Airlines
National Semiconductor
Hertz
Amazon.com
Babson College
National Science Foundation
Bell Atlantic
Wells Fargo
Cisco Systems
Dell
Etc.]
“In the network economy, the
Website becomes the company’s
primary interface to the customer.
The user interface becomes the
marketing materials, store front,
store interior, sales staff and postsales support all rolled into one.”
Jakob Nielsen,
Designing Web Usability
“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
Red Herring (01/00)
75% of online
shoppers don’t
complete their
purchase!
T.T.D.: Message!
SIMPLICITY!
Notes Page
• READ JAKOB NIELSEN’S BOOK! Hold
your site to the Exacting Nielsen
Standard! [Be ruthless … on yourself.]
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
Change … Or Die!
“Most of the brick and mortars look at the
Internet as an add-on business … until
they get a major scare. Then they either
change or die. … You have to put all your
heart and soul in that direction, the way
Charles Schwab and Dell did.”
Flip Filipowski, divine interVentures (Red
Herring)
“Banking is
necessary. Banks
are not.”
Dick Kovacevich,
Norwest/ Wells
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.
**Reinvent our marketspace!
T.T.D.
Most important Y2K
question: Are you &
yours “dealing with” the
Web … or “embracing it”
as “central to our
being”?
Notes Page
• SPEND A
“TTD”!
LOT OF TIME ON THIS
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
Getting Right Down to
Brass Tacks …
Bricks & Mortar?
Clicks & Mortar?
All Clicks All the time?
#1: ANY IDIOT WHO THINKS
CONSUMERS ARE GOING
TO GIVE UP THE
IN-STORE SHOPPING
EXPERIENCE FOR THE
INTERNET IS JUST THAT.
AN IDIOT.
#2: ANY IDIOT WHO THINKS
WE ARE STILL GOING TO
BE HANGING OUT IN
STORES 15 YEARS FROM
NOW IS JUST THAT.
AN IDIOT.
TP: ANY IDIOT WHO THINKS
THEY KNOW WHICH ONE
OF THE ABOVE TWO
STATEMENTS IS TRUE
IS THE BIGGEST IDIOT
OF ALL.
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 3:
Think Global!
Rule #1
If “it” is [truly] good
… then it’s good
enough for …
THE WORLD.
Rule #2
There’s no such
thing as “too small to
be global.”
[GET A LIFE.]
Rule # 3
When?
Now.
Rule #4
Hang out …
vigorously!
Rule #5
Glom onto a
[modest-sized]
partner … who
loves/ “gets” you!
Rule #6
Tailor!! [But don’t give
away the store.]
Rule #7
Phil Crosby not
withstanding, you’ll
not [likely] “get it
right the first time”!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 4:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Women … 49% of Web users; 6
of 10 new users; 83% of wired
women are primary decision
makers for family healthcare,
finances, education.
Source: Business Week (11-99)
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
Most Under-reported story!
9M*/28M(1 of 4)/$3.6T
[> Germany]
* 400K in ’72; 132% since ’92
Sources: NFWBO, Cognetics, Business Wire (030600)
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2000 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
T.T.D.: Measure!
How clear are you about
your demographics … in
particular, share of
women purchasers [for
you, for the industry]?
Notes Page
• Are you getting an “unfair share” of
women purchasing your service or
product? IF NOT, WHY NOT? [Most of the
other schmoes are, after all, asleep!]
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.”
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
E.g.: Quicken.com: gender-neutral
TheStreet.com: male-ish (“aggressive,
we-tell-you-what-to-think”)
MotleyFool.com: female-ish
(“inquisitive, open, supportive”)
WFN and MsMoney.com: female (e.g.:
emphasize parenting and divorce
issues)
Source: Red Herring, Kathleen Morris of WFN
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
[ It’s Simple …
Women are more
thoughtful and
more deliberate
than men!]
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/ Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“What kind of car does
Mommy want?”
“I didn’t know
[company] were giving
company cars to
secretaries.”
Source: UK financial services CEO,
12/99
March 2000, re Women’s
Influence on Home Purchases …
“But then she comes
back to papa for
permission, right?”
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd 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!”
e-Response [esponce?] to ACE
Presentation [04.07.00] …
“… contract home builders! When
is this industry going to wake up
and realize that women not only
decide which house to buy,
but also buy and pay for the
house ourselves?”
B.Bosch/Toronto
Not a Morality Play!
“It is critical that we all understand
that IBM is not marketing to women
entrepreneurs because it is the thing
to do, or even the right thing to do.
We are marketing to women
entrepreneurs because it is a huge
opportunity.”
Cherie Piebes
Wanna see my
“dirty pics”
collection?
T.T.D.
DO YOU
REALLY
“GET IT”?
Notes Page
• Spend a lot of time talking about this. THE
POTENTIAL PAYOFF IS ENORMOUS … IF
YOU ARE WILLING TO INVEST
ACCORDINGLY.
T.T.D.
DO YOU
UNDERSTAND [“GET”]
THE ENORMITY OF
THIS OPPORTUNITY?
Notes Page
AT
LENGTH!
• Discuss …
“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
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
74/55
“At each stage of their lives, the
needs and desires of the baby
boomers have become the dominant
concerns of American business and
popular culture. If you can anticipate
the movement of the baby-boom
generation’s life-span migration, you
can see the future.”
Ken Dychtwald, Age Wave
Aging/“Elderly”
2X growth rate
$$$$$$$$$$$$
“I’m in charge!”
Good source: Ken Dychtwald,
Age Wave
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
“Any student who
combines an expertise in
gerontology with, say, an
M.B.A. or law degree will
have a license to print
money.”
Newsweek
T.T.D.
SOOOOO … WHERE
ARE YOU ON THIS
ONE???
[REMEMBER: 74M!]
Notes Page
THIS IS
ANOTHER
BIGGIE! Think about it. Discuss
• Listen up:
it. Collect data. [Become a “student.”]
Experiment.
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 5:
Design Rules!
And Tomorrow …
“Fifteen years ago companies
competed on price. Now It’s
quality. Tomorrow
design.”
Robert Hayes
it’s
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only thing
that differentiates one product
from another in the
marketplace.”
features.
Norio Ohga
“Design is treated like a
religion at BMW.”
Fortune (10/98)
Drop-dead Charm!
“The new Beetle fails at
most categories. The only
thing it doesn’t fail in is
drop-dead charm.”
Jerry Hirshberg, Nissan Design
International
Object of Desire!
“Every now and then, a design comes
along that radically changes the way we
think about a particular object. Case in
point: the iMac. Suddenly, a computer
is no longer an anonymous box. It is a
sculpture, an object of desire, something
that you look at.”
Katherine McCoy, Michael McCoy, Illinois Institute of
Technology
Design as Soul
“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. Design
is the
fundamental soul of a
man-made creation.”
Steve Jobs
Check Out the Language:
“Tomorrow it’s design …”
“Design is the only thing …”
“Design is … religion ...”
“Drop-dead charm …”
“Object of desire …”
“Fundamental soul …”
T.T.D.
Where do you stand on design?
[1 = Who, me? 10 = Preoccupation.]
Where do you stand
on design-as-soul ?
Notes Page
• I’m at a bit of a loss here. I DON’T KNOW
HOW TO “MAKE YOU” “GET” THIS. I think
it is of the Utmost Importance. I want you
– at least – to become “aware” of the
Power of Great Design. And … I do
[fervently] believe that Great-Design-IsSoul.
Design Revisited/ Design as
Principal Brand Statement
Overall point of view/ Story
Soul
Integrated/ Inclusive/
NOT PIECEMEAL
Yes/ or No/ not Maybe
Think Back …
New Beetle, iMac =
Radical, “Bet the
Company”
Right?
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
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
One-sixth Second per Item!
“During the 30 minutes you spend on
an average trip to the supermarket,
about 30,000 products vie to win your
attention and ultimately to make you
believe in their promise.”
Thomas Hine, The Total Package
[ Design Moments!
Shopping cart =
2X heavy items
Source: Wall Street Journal (11-24-99) ]
Beating the 5 A.M. Blues!
0.72
vs.
0.723
“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
T.T.D./Message:
Services are Not Intangible!
You “give off” hundreds of
design cues … daily!
YOU ARE A DESIGNER!
Notes Page
• List 100 [!] “design cues” that you give
off! [Okay, start with 25.]
Graceful language!
T.T.D./“Beauty Contest!”
1. Pick one form/ document: invoice,
airbill, sick leave policy, returns claim
form.
2. Rate it on a 1 to 10 scale
(1 = Awful; 10 = Scintillating) on three
dimensions: Beauty, Grace, Clarity.
3. Repeat … every 15 days.
Notes Page
• DO THIS! USE MY TERMS! [Beauty …
Grace … Clarity.] Be quantitative.
[PLEASE.]
Design =
SIMPLICITY … HONESTY
… ACCESSIBILITY …
ENJOYMENT
Jonathan Ive (iMac)
Design =
“There are three basic
principles behind any welldesigned product:
truth, humanity, and
simplicity.”
Sohrab Vossoughi,
Ziba Design
Words (Again!)
Drop-dead Charm … Object of
Desire … Truth … Humanity …
Simplicity … Focus … Honesty
… Accessibility … Enjoyment
… Story … Adventure … Plot …
Passion
Clarity!
Simplicity!
Functionality!
Focus!
Beauty!
Surprise!
Quirkiness!
Humane-ness!
T.T.D.: Campaign Y2K!
Plain, energetic,
sparkling
English!
Notes Page
• Spend … a lot … of time talking about
this. MAKE IT YOUR EVERYDAY
STANDARD FOR …
EVERYTHING … THAT
EMERGES FROM YOU/YOUR UNIT.
T.T.D./Design “Awareness”!
STEP No. 1:
NOTEBOOK!
[Start recording the awesome
and the awful.]
Notes Page
• THIS IS MY “SECRET.” I am not “artistic.”
But … I did teach myself to be …
CONSTANTLY AWARE. The Key: My
[simple] notebook! [I’VE NOW BEEN
“RECORDING” FOR ALMOST TEN
YEARS!]
T.T.D./Huge
Opportunities
[That Damn Few Are Pursuing!]
Women!
The rapidly aging population!
Design!
Design = Everything!
Hence: Evaluate
Everything on These
Criteria!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 6:
It’s the Experience!
“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
“What’s the plot?”
Freeman Thomas, designer
T.T.D.
WHAT’S THE
[your] PLOT?
Notes Page
• WHAT IS YOUR STORY? [Be specific!]
Message: This applies to every [Finance]
project!
Mantra: “Any good can be
ing-ed”
the driving experience
the pumping experience
the sitting experience
the reading experience
the washing experience
the cooking experience
Joseph Pine & James Gilmore, The Experience
Economy: Work Is Theatre & Every Business a Stage
“This is the end of the pure
product era. For instance, car
makers are beginning to
understand that the car is a
platform for delivering services
that drive the customer
experience.”
Carly Fiorina, HP @ Comdex ’99
Marketing Aesthetics
“managing aesthetics experiences”
… “aesthetics strategy” … “marketing
of sensory experiences that
contribute to the organization’s or
brand’s identity” … “mapping
strategic vision to sensory stimuli”
Source: Marketing Aesthetics, Bernd Schmitt &
Alexander Simonson
Look + Feel + Taste + Touch
+ Sound + Smell + Texture +
Color + Typeface + Etc. =
EXPERIENCE*
* Bernd Schmitt & Alexander Simonson,
Marketing Aesthetics
T.T.D.
Carefully examine/think
through every aspect of
“the experience of us.”*
*This holds for the Finance Dept. as well
as the corporation’s “products”
Notes Page
• This demands a lot of care! THINK OF
YOURSELF AS A DRAMATIST, A
DIRECTOR. THINK ABOUT “THE WAY WE
COME ACROSS.” Be … ridiculously …
specific! [God is in the Details.]
TP’s “Mega-marketing-trends”
Rapidly aging population!
Health fanaticism!
Environmental concerns!
Freaky independence!
Women rule!
And Now For A
th
Nod To 1/7 of
Our Economy!
“Medicine looks likely to
change more in the next
20 years than it has in
the last 200.”
British Medical Journal (11-11-99)
Health Care Tsunami
Cure to Prevention/Wellness
Gene “stuff”
Holistic/Homeopathic/Nontraditional
Patient-centric/Web-led
No waste
(Healtheon/WebMD et al.)
TP 03.26.00:
AMA Riff
Are You Fighting Yesterday’s War?
Docs don’t know it all.
There are a lotta bad docs.
There are a lotta bad medical decisions.
“Hospitals” kill far too many people.
(Bad decisions, bad execution.)
Systemic waste is stratospheric. (Still.)
Patients are getting (much) smarter.
Patients have had it with HMOs. (And Docs with the
“white-coat syndrome.”)
You are not smarter than I am. (I am your partner.)
You are not busier than I am. (!!!!!)
Patients want more data. (And can readily get it.)
Boomers will control their lives. Period.
Medicine is about to be overwhelmed with a tsunami!
1965: “ ‘Doctor’ will see you now. ‘Doctor’
will take care of you.”
YES, NURSE.
ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your
expert help.”
P.S.: THE VIAGRA [ETC.] I ORDERED
ONLINE IS GREAT.
Patient-centric* Health Care
Wellness (Fix to prevent.)
Partnership (“Tour guide” model.)
RESPECT! (Mutual.)
WOMEN RULE!
*Not: HMO-centric, Employer-centric,
Insurer-centric, Doc-centric
AMA: Push
“Patient
Partnership”
Model????
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
BRAND POWER!
Brand Defined
Distinction
Excellence
Emotional “Signature”
Trustworthiness
Consistency
Shorthand
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
No Room for Brands?
Nike
Saturn
CNN
America Online
Charles Schwab
Starbucks
The Gap
Intel
Etc.
T.T.D.
HAVE YOU GENUINELY
EXAMINED THE ENORMITY
OF “BRAND POWER”?
ARE YOU A NO-BALONEY
STUDENT OF BRANDING?
Notes Page
STUDENTHOOD
MATTERS!
• As usual:
Brand = Trust!
“Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but ‘Intel Inside’ has
become a ‘trust mark’ - a trademark
that consumers put their faith in.”
The Economist
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the
right mentality. You go to your team and
you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded
sub-$200 watch market, they made it into
a brand name, named after the most
irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
“Salt is salt is salt. Right? Not when it
comes in a blue box with a picture of
a little girl carrying an umbrella. Morton
International continues to dominate the
U.S. salt market even though it charges
more for a product that is demonstrably
the same as many other products
on the shelf.”
Tom Asaker, Humanfactor Marketing
“Consumers don’t simply buy products,
they buy attitudes as well. When
confronted with proliferation and
diversity, choices become increasingly
informed by belief. [Consumers] want to
know who is behind the products that
they buy. They want to know the
company. They want to know
what you think.”
Jesper Kunde, Corporate Religion
“Corporate Religion is a completely new way
of thinking about companies. Today, the
product is still the main communication
highway in the company. When companies
make the shift to selling solutions, brands and
attitudes … communicating the company’s
attitudes and values becomes the
decisive parameter for success. It
demands that you find out who you are
as a company.”
Jesper Kunde, Corporate Religion
T.T.D./Calling the
Corporate Shrink!
“Organizational
Psychotherapy”/
WHO WE ARE!
Notes Page
• This is The Big Enchilada:
SPEND – lotsa – TIME
ON IT!
Scott Bedbury/ Nike, Starbucks
“A Great Brand taps into emotions. Emotions drive
most, if not all, of our decisions. A brand reaches
out with a powerful connecting experience. It’s an
emotional connecting point that
transcends the product.
“A Great Brand is a story that’s never completely
told. A brand is a metaphorical story that connects
with something very deep - a fundamental
appreciation of mythology. Stories create the
emotional context people need to locate
themselves in a larger experience.”
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
The stock must have a great
story!
The company must have a
product that changes the
way the world works!
There must be an “industry”!
Source: Technology Investor 05.00
“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 that
to how we work with others.
their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“In the funky village, real
competition no longer revolves
around marketshare. We are
competing for attention –
mindshare and heartshare.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
T.T.D./Assignment Y2K
Write an essay on
“Who we are.”*
* Jesper Kunde, Corporate Religion
Notes Page
500 words.
• [And then: 10 words.]
• DO IT!
“How can I know what I think till I
see what I say”*
Exercise : Write copy for
a bookmark! (Etc.)
*Graham Wallas, The Art of Thought
Message: Fighting “Me-too Madness”
Moving beyond “hard” quality
Building “community” on the Web
Design primacy
Creating “experiences”
Marketing to women
[+ the rapidly aging population]
The Brand/Defining the Brand
as a way of life driven by
a WOW Workplace
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
T.T.D./Message Bran[d]son:
Live the Brand!*
*How? [Be specific! As of … NOW!]
Notes Page
• YOU ARE THE BRAND! How – exactly – has that
been expressed by your actions … TODAY?
[IN THE LAST 45
MINUTES?]
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Think Global!
S4: Women Rule! (and the elderly)
S5: Design Rules! (too)
S6: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Leadership
Passion Rules!
My McNamara Hang Up!
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
T.T.D.
Evaluate yourself
[unsparingly] as an
enthusiastic
“performing artist”/
“story teller”!*
*In today’s dealings. [Use
outside assistance?]
Notes Page
• You don’t have to be Bill Cosby. You do
have to understand that … ALL LEADERS
ON-STAGE
ARE
… ALL THE
TIME! [And: “Leader” does NOT mean
“boss.” It means anyone trying to “Get
Cool Stuff Done.”]
Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF
AT RISK EVERY DAY!
T.T.D./Follow Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF AT
RISK!
Notes Page
• Sooooooo ……
???
“If you ask me what I have
come to do in this world, I
who am an artist, I will
reply, I am here to live my
life out loud.”
Emile Zola
“I’d rather regret the
things I have done than
the things I have not.”
Lucille Ball
How sweet it is!
T.T.D.
IF NOT NOW …
WHEN?
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti
A new world is being born.
All the old “rules” are
irrelevant/dangerous.
All the old “roles” are
irrelevant/dangerous.
WE GET TO MAKE IT UP AS WE GO.
“It” is a hoot!
“It” is scary!
It is liberating!
Jacques [and I] want to be “Players”!
And You?