Tom Peters’ 2002 We Are In A Brawl With No Rules! Anaheim/03.11.2002 Credibility 2002 $200M+ for “highly effective leadership and vision in a uniquely complex marketplace.” (Board of Directors) Douglas Daft, Coca-Cola source: USA Today (03.05.2002) Share price: -22% (S&P500: -12%). Market share: -0.4% vs. #1 rival. All Slides Available at … tompeters.com Note: Lavender text in this file is a link. Confusion Reigns. “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 <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 1 day 2001 = Year’s goods trade in 1949, year’s FEX in 1979, year’s global calls in 1984. Source: Charles Handy, The Elephant and the Flea The Destruction Imperative. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 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 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 The [New] Ge Way DYB.com “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors Axiom (Hypothesis): We have been screwed by Benchmarking … Best Practice … C.I./Kaizen. Axiom (Hypothesis): We need Masters of Discontinuity/ Masters of Ambiguity … in discontinuous/ambiguous times. A White Collar Revolution. 108 X 5 vs. 8X1 = 540 vs. 8 (-98.5%) IBM’s Project eLiza!* * “Self-bootstrapping”/ “Artilects” “Unless mankind redesigns itself by changing our DNA through altering our genetic makeup, computergenerated robots will take over the world.” – Stephen Hawking, in the German magazine Focus N.W.O./Holy Moly: Unemployment up 2% … real wage growth highest since 60s … productivity soaring. Source: BW/02.11.2002 E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in years. Source: BW (01.28.02) IS/IT … “On the Bus” or “Off the Bus.” square feet Dell’s OptiPlex Facility Big Job: 6 to 8 hours. (80,000 per day) Parts Inventory: square feet. Cisco! 90% of $20B (=$50M/day) Annual savings in service and support from customer self-management: $550M (P.S.: C.Sat e >> C.Sat h) The Real “News”: X1,000,000 TowTruckNet.com New Politics: ewg.org* *Environmental Working Group—stats on recipients of farm subsidies 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 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 Read It Closely: “We don’t sell We sell speed.” insurance anymore. Peter Lewis, Progressive “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! … “Suppose – just suppose – that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined Q: Is that all there is? A: Quite possibly. “Roche’s New Scientific Method”— Fast Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.” “PSF” … The Professional Service Firm Model. So what will be the Basic Building Block of the New Org? Every job done in W.C.W. is also done “outside” …for profit! Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc. TP to NAPM: You are the … Rock Stars of the B2B Age! eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF … (1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt! PSF Unbound … the Heart of the Valueadded Revolution. Base Case: The Sameness Trap I “While everything may it is also increasingly the same.” 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? 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 “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.” Leading Insurance Industry Analyst SWA > American + Continental + Delta + Northwest + United + USAirways. Source: Boston Globe (12.22.2001) Getting Beyond Lip Service! “No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group 2002: Same-Same-Same … Farmers = GE = Oracle = MCAA = Biotech & Pharmaceutical Trainers = Omnicom GE/IS: “We don’t sell circuit breakers.” Farmers: “We don’t sell insurance.” Oracle: “We don’t sell apps-in-boxes.” MCAA: “We don’t sell ‘a job.’” B&T Trainers: “We don’t sell pills.” Omnicom: “We don’t sell ads.” (Seagate: “We sell the sexiest boxes … and we’re proud of it.”) The Day! 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 … Delphi … Etc. … Etc. “We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems “Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?” Bob Nardelli, GE Power Systems Keep In Mind: Customer Satisfaction versus Customer Success HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc. Gerstner’s IBM: Systems Integrator of choice. (BW/12.01). Global Services: $35B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many inhouse programs/products. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … 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) HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc. New Springs = Turnkey Flexible sourcing. Collections. Packaging. Merchandising. Promotion. Systems & Site mgt. Who was the number one employer of architecture school grads in the U.S. last year? The Pursuit of … Whatever: Accenture to “do” AT&T’s sales & customer service … for $2.6B/5 years … savings to AT&T of 50%. Accenture to “do” Avaya’s corporate learning & training. Source: BW (02.04.2002) “VISIONS OF A BRAND-NAME OFFICE EMPIRE. Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.” (12.16.2001) –New York Times PSF Unbound+ … 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 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 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%” P.S.: “Experience” applies to all work! 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 “I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.” Bob Lutz: Source: NYT 10.19.01 The “Experience Ladder” Experiences Services Goods Raw Materials Ladder Position Measure Solutions Success (Experiences) Services Satisfaction Goods Six-sigma Sales2002. The Sales25: Great Salespeople … 1. Know the product. (Find cool mentors, and use them.) 2. Know the company. 3. Know the customer. (Including the customer’s consultants.) (And especially the “corporate culture.”) 4. Love internal politics at home and abroad. 5. Religiously respect competitors. (No badmouthing, no matter how provoked.) 6. Wire the customer’s org. (Relationships at all levels & functions.) 7. Wire the home team’s org. and vendors’ orgs. (INVEST Big Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.) Great Salespeople … 8. Never overpromise. (Even if it costs you your job.) 9. Sell only by solving problems-creating profitable opportunities. (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?) 10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can encompass. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.) Great Salespeople … 12. Think “Turnkey.” (It’s always your problem!) 13. Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. (PERIOD.) 14. Help the customer get to know the vendor’s organization & build up their Rolodex. 15. Walk away from bad business. (Even if it gets you fired.) 16. Understand the idea of a “good loss.” (A bold effort that’s sometimes better than a lousy win.) 17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy. 20. Seek several “cool customers”—who’ll drag you into Tomorrowland. Great Salespeople … 21. Use the word “partnership” obsessively, even though it is way overused. (“Partnership” includes folks at all levels throughout the supply chain.) 22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word “we.” 23. When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY? 25. Keep your bloody PowerPoint slides simple! Re-inventing the Individual: Ahoy BRAND YOU. 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 Minimum New Work SurvivalSkillsKit2002 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 Sam’s Secret #1! 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 “My ancestors were printers in Amsterdam from 1510 or so until 1750, and during that entire time they didn’t have to learn anything new.” Peter Drucker, Business 2.0 (08.22.00) “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) 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: Invent. Reinvent. Repeat. Source: HP banner ad Distinct … or Extinct. Message: Brand You, Big Time! I AM AN ARMY OF ONE Redefining the Work B.H.A.G.s and WOW Projects. Itself I: “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec Language matters! Wow! BHAG! “Takes your breath away!” “Let’s make a dent in the universe.” Steve Jobs 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!) Re-defining the Work Itself II: WOW Projects for the “Powerless.” 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. BOTTOM LINE The Enemy! Joe J. Jones 1942 – 2002 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T HIM! LET 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” *Fortune, article on “Most Admired Global Corporations” It AIN’T about the science. It’s NEVER about the science. It’s ALWAYS about the PASSION for the IDEA. Message to “scientists”: I wonder … Will one of you be awoken some December morning in Stockholm by candle-carrying kids? If you are not prepared to be fired over your beliefs … you are working on the wrong project - TP Re-defining the Work Itself III: Starting a Wow Projects Epidemic. “Ordering” Systemic Change is a Stupid Waste of Time! Premise: Demos! Heroes! Stories! Demo = Story “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner, Leading Minds: An Anatomy of Leadership MB A!* *Managing By Story-ing Around/David Armstrong G.M. … V.C. … W.P. … M.B.S.A. Silicon Valley Success [Failure?] 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 “The” Unsung Work Tool: Design Mindfulness. Design’s place in the universe. And Tomorrow … “Fifteen years ago companies competed on price. Now it’s Tomorrow it’s design.” quality. Robert Hayes 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 “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 “The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They're run by passionate maniacs who make everybody’s life miserable until they get what they want.” Bran Ferren, Applied Minds/Wired 1-2001 “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 Check Out the Language: “Tomorrow it’s design …” “Design is the only thing …” “Design is … religion ...” “Drop-dead charm …” “Object of desire …” “Passionate maniacs …” “Fundamental soul …” Design Transforms even the [Biggest] Corporations! TARGET … “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age) Bottom Line. Design “is” … WHAT & WHY I LOVE. LOVE. I LOVE my ZYLISS Garlic Peeler! Design “is” … WHY I GET MAD. MAD. Wanted: 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. Though not “artistic,” I love “cool stuff.” 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 productservice-experience stands out … or doesn’t. Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the front burner. Message: Design is the wellspring of branding. Great design takes guts and is “soul deep.” T.T.D./Design “Awareness”! STEP No. 1: NOTEBOOK! [Start recording the awesome and the awful.] Design+ = Beautiful Systems. Fred S.’s “mediocre” thesis. Herb K.’s napkin. Great design = One-page business plan (Jim Horan) K.I.S.S.: Gordon Bell (VAX 500/50. daddy): Chas. Wang (CA): Behind schedule? Cut least productive 25%. have. Must hate. / Must design. Must undesign. Systems: Must Mgt. Team includes … EVP (S.O.U.B.) Executive Vice President, Stomping Out Unnecessary Bullshit “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – P.D. First Steps: “Beauty Contest”! 1. Select one form/document: invoice, air bill, sick leave policy, customer returns-claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days. Brand = Talent The Talent Ten 1. Obsession P.O.T.* = All Consuming *Pursuit of Talent “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” Warren Bennis & Patricia Ward Biederman, Organizing Genius Sports Franchise GM Model 25/8/53: 2. Greatness Only The Best! 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 3. Performance Up or out! “We believe companies can increase their market cap 50 percent in 3 years. Steve changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased Macadam at Georgia-Pacific profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent Message: Some people are better than other people. Some people are a helluva lot better than other people. 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) 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] “Talk to kids. Watch how they use instant messaging, and you can learn it all. Kids hold the clue to the future of technology.” John Patrick, ebusiness guru, IBM 6. Diversity Mess Rules! “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 mixand-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 7. Women Born to Lead! “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 The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”! Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group 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 “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 Okay, you think I’ve gone tooooo far. DO ANY OF YOU SUFFER FROM TOO MUCH TALENT? How about this: 63 of 2,500 top earners in F500 8% Big 5 partners 14% partners at top 250 law firms 43% new med students; 26% med faculty; 7% deans 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 enough weird people in “Are there the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01) 9. Opportunity Make It an Adventure! “H.R.” to “H.E.D.” ??? Human Enablement Department 10. Leading Genius We are all unique! Beware Lurking HR Types … One size NEVER fits all. One size fits one. Period. 48 Players = 48 Projects = 48 different success measures. 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 Rule No. 1 (and there are no other rules): How do we configure our company/operation so that we’re truly able to provide talented people the “ride of their lives”? Source: Equinox Manifesto (12.01) Trends I: Speaking of … Women. Women & the Marketspace. ????????? 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 2/3rds working women/ 50+% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed $4.8T > Japan 9M/27.5M/$3.6T > Germany 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% 2002 … 50% OPPORTUNITY NO. 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!) Read This: Barbara & Allan Pease’s Why Men Don’t Listen & Women Can’t Read Maps “It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps “Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps “As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps “Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps Read This Book … EVEolution: The Eight Truths of Marketing to Women 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 “Women don’t buy They join them.” brands. EVEolution Not ! “Year of the Woman” Enterprise Reinvention! Recruiting Hiring/Rewarding/Promoting Structure Processes Measurement Strategy Culture Vision Leadership THE BRAND ITSELF! “Honey, are you sure you have the kind of money it takes to be looking at a car like this?” 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 Alto resident … 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 Stupid! Ad from Furniture /Today (04.01): “MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way” Presenting Experts: M = F= ?? 16; (94% = 272) Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!” 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!” Psssst! Wanna see my “porn” collection? Whose pelvis is it, anyway? Trends II: Welcome to “Old World.” “ ‘Age Power’ will st 21 rule the 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%) “NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?” USN&WR Cover/06.01 Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!” Member Growth: 1987 – 1997 18 – 34: 26% 35 – 49: 63% 50+: 118% Source: IHRSA 50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury $610B healthcare spending/74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old Stupid! No: “Target Marketing” Yes: “Target Innovation” & “Target Delivery Systems” Reprise: THINK WEIRD … the H.V.A. Bedrock. The High Standard Deviation Enterprise. THINK WEIRD: Saviors-in-Waiting Disgruntled Customers Off-the-Scope Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees CUSTOMERS: “Futuredefining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.” Adrian Slywotzky, Mercer Consultants COMPETITORS: “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 Employees: “Are there enough weird people in the lab these days?” V. Chmn., pharmaceutical house, to a lab director (06.01) Suppliers: “There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.” Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) don’t need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Don’t try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your company’s success. Bob Sutton, Weird Ideas that Work: 11½ Ideas for Promoting, Managing and Sustaining Innovation Advice to Corporate Leaders: “Consider the metaphor of the windmill: You can harness raw power but you can’t control it. … Hire artists, clowns, or other disrupters to come in and challenge your corporate environment. … Hire a corporate anthropoligist to analyze how tolerant your organization is of deviants and other innovators. … Once the anthropologist leaves, hire a shaman to drive out the evil spirits of conformity. …” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) “Deviance tells the story of every mass market ever created. What Deviants, Inc. starts out weird and dangerous becomes America’s next big corporate payday. So are you looking for the next mass market idea? It’s out there … way out there.” Source: Ryan Matthews & Watts Wacker, Fast Company (03.02) It all adds up to … THE BRAND. “WHO ARE YOU ?” [these days] TP to Client “Most companies tend to equate branding with the company’s marketing. Design a new marketing campaign and, voilà, 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 “Brand Promise” Exercise: (1) Who Are WE? (poem/novella/song, then 25 words.) (2) List three ways in which we are UNIQUE … to our Clients. (3) Who are THEY (competitors)? (ID, 25 words.) (4) List 3 distinct “us”/“them” differences. (5) Try “results” on your teammates. (6) Try ’em on a friendly Client. (7) Try ’em on a skeptical Client! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) RD 3 Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: See the next slide.) Source: Jump Start Your Business Brain, Doug Hall 2 Questions: “How likely are you to purchase this new product or service?” (95% to 100% weighting by execs) “How unique is this new product or service?” (0% to 5%*) *No exceptions in 20 years – Doug Hall, Jump Start Your Business Brain The Heart of Branding … “WHO ARE WE?” “WHAT’S OUR STORY?” DO THE HOUSEKEEPERS & CLERKS “BUY IT”? [ARE YOU V-E-R-Y SURE?] “EXACTLY HOW ARE WE DRAMATICALLY DIFFERENT?” “WHY DOES IT MATTER TO THE CLIENT?” “EXACTLY HOW DO I PASSIONATELY CONVEY THAT DRAMATIC DIFFERENCE TO THE CLIENT ?” Leading in Totally Screwed Up Times. The Leadership The Basic Premise. 1. Leadership Is a … Mutual Discovery Process. “I don’t know.” Leaders-Teachers Do Not “Transform People”! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostly—caveat: “they” don’t engage unless they’re “mad about something”) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachersleaders) had never dreamed existed—and then the leaders-mentors-teachers (6) applaud like hell, stage “photo-ops,” and ring the church bells 100 times to commemorate the bravery of their “followers’ ” explorations! The Leadership Types. 2. Great Leaders on Snorting Steeds Are Important – but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul. 25/8/53* (*Damn it!) 3. But Then Again, There Are Times When This “Cult of Personality” (Type II Leadership) Stuff Actually Works! “A leader is a dealer in hope.” Napoleon (+TP’s writing room pics) 4. Find the “Businesspeople”! (Type III Leadership) I.P.M. (Inspired Profit Mechanic) 5. All Organizations Need the Golden Leadership Triangle. The Golden Leadership Triangle: (1) CreatorVisionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. 6. Leadership Mantra #1: IT ALL DEPENDS! Renaissance Men are … a snare, a myth, a delusion! 7. The Leader Is Rarely/Never the Best Performer. 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. The Leadership Dance. 8. Leaders … SHOW UP! P.S. … 5,000 miles for a 5 min. meeting! Mark McCormack: 9. Leaders … LOVE the MESS! “If things seem under control, you’re just not going fast enough.” Mario Andretti 10. Leaders 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!) 11. Leaders Re -do. “If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. Microsoft fails constantly. They’re eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power they’ve gained in other markets to enforce their standard.” Seth Godin, Zooming 12. BUT … Leaders Know When to Wait. Tex Schramm: The “too hard” box! 13. Leaders Are … Optimists. Hackneyed but none the less LEADERS SEE CUPS AS “HALF FULL.” true: “[Ronald Reagan] radiated an almost transcendent happiness.” Half-full Cups: Lou Cannon, George (08.2000) 14. Leaders … DELIVER! “Leaders don’t ‘want to’ win. Leaders ‘need to’ win.” #49 15. BUT … Leaders Are Realists/Leaders Win Through LOGISTICS! The “Gus Imperative”! 16. Leaders FOCUS! “To Don’t ” List 17. Leaders … Set CLEAR DESIGN SPECS. Danger: S.I.O. (Strategic Initiative Overload) 1@T: (1) Neutron JackWorld/ Jack. (Banish bureaucracy.) (2) “1, 2 or out” Jack. (Lead or leave.) (3) “Workout” Jack. (Empowerment, GE style.) (4) 6-Sigma Jack. (5) Internet Jack. (Throughout) TALENT JACK! 18. Leaders … Send V-E-R-Y Clear Signals About Design Specs! Ridin’ with Roger: “What have you done to DRAMATICALLY IMPROVE quality in the last 90 days?” It’s Relationships, Stupid. 19. Leaders Trust in TRUST! Credibility If It Ain’t Broke … Break It. 20. Leaders … FORGET!/ Leaders … DESTROY! Cortez! Leaders “dump the ones who brung ’em” —Nokia, HP, 3M, PerkinElmer, Corning, etc. 21. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.” “Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992) 22. Leaders … HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Wayne Burkan, Wide Angle Vision WE BECOME WHO WE HANG WITH! Leaders know … 23. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES ABOUT IT! “Fail faster. Succeed sooner.” David Kelley/IDEO 24. Leaders Make … BIG MISTAKES! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec (and, de facto, Jack) Create. 25. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to CREATE NEW MARKETS. No one ever made it into the Business Hall of Fame on a record of “line extensions.” 26. Leaders Pursue DRAMATIC DIFFERENCE! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3RD Law: DRAMATIC DIFFERENCE (Execs Don’t Get It: “intent to purchase” – 100%; “unique” – 0% to 5%) Source: Jump Start Your Business Brain, Doug Hall 27. Leaders Push Their W-a-y Up the Value-added/ Intellectual Capital Chain Organizations 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business! 28. Leaders LOVE the New Technology! square feet 29. Needed? Type IV Leadership: Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) CreatorVisionary … (2) Talent Fanatic-Mentor-V.C. … (3) Inspired Profit Mechanic. (4) Technology Dreamer-True Believer Talent. 30. When It Comes to TALENT … Leaders Always Swing for the Fences! Message: Some people are better than other people. Some people are a helluva lot better than other people. 31. Leaders “Manage” Their EVP/Internal Brand Promise. MantraM3 Talent = Brand 32. Leaders LOVE RAINBOWS – for Pragmatic Reasons. “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 Passion. 33. Leaders … Out Their PASSION! “Create a ‘cause,’ not a ‘business.’ ” G.H.: 34. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! BZ: “I am a … Dispenser of Enthusiasm!” 35. Leaders Focus on the SOFT STUFF! “Soft” Is “Hard” - ISOE Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP’s final words: CYNICISM SUCKS.] The “Job” of Leading. 36. Leaders Know It’s ALL SALES ALL THE TIME. If you don’t LOVE SALES … find another life. (Don’t pretend TP: you’re a “leader.”) (See TP’s The Project50.) 37. Leaders LOVE “POLITICS.” If you don’t LOVE POLITICS … find another life. (Don’t pretend TP: you’re a “leader.”) 38. But … Leaders Also Break a Lot of China If you’re not pissing people off, you’re not making a difference! 39. Leaders Give … RESPECT! “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade 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 40. Leaders Say “Thank You.” “The two most powerful things a kind word and a thoughtful gesture.” in existence: Ken Langone, CEO, Invemed Associates [from Ronna Lichtenberg, It’s Not Business, It’s Personal] 41. Leaders Are … Curious. The Three Most Important Letters … TP/08.2001: 42. Leadership Is a … Performance. “It is necessary for the President to be the No. 1 actor.” nation’s FDR 43. Leaders … Are The Brand The BRAND lives (OR DIES) in the “minutiae” of the leader’s momentto-moment actions. 44. Leaders … GREAT STORY! Have a Leaders don’t just make products and make decisions. Leaders make meaning. – John Seeley Brown Introspection. 45. Leaders … Enjoy Leading. “Warren, I know you want to ‘be’ president. But do you want to ‘do’ president?” 46. Leaders … KNOW THEMSELVES. Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.) 47. But … Leaders have MENTORS. Upon having the Leadership Mantle placed upon thine head, thou shalt never hear the unvarnished truth again!* The Gospel According to TP: (*Therefore, thy needs one faithful compatriot to lay it on with no jelly.) 48. Leaders … Take Breaks. Zombie! Zombie! Zombie! Zombie! The End Game. 49. Leaders ???: “Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.” “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES” 50. Leaders Know WHEN TO LEAVE! Thank You!