Tom Peters’
Lessons in Leadership
Grand Rapids
02-23-00
Hen scratches @
37,000 feet …
Microsoft = R.O.W.
Microsoft > GM + Ford +
Boeing + Lockheed Martin +
Deere + Caterpillar + USX +
Weyerhaeuser + Union Pacific +
Kodak + Sears + Marriott +
Safeway + Kellogg
Source: Business Week data through 5-99
Microsoft = R.O.W. (II)
Microsoft > GM + Ford Boeing + Lockheed
Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union
Pacific + Kodak + Sears + Marriott + Safeway + Kellogg
+ McDonald’s + Bank One +
General Mills + American Airlines
+ United Airlines + + Delta Air
Lines + US Airways +
Quaker Oats
Source: Yastrow Marketing (through 11-23-99)
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)
“It means nothing
less than the total
reinvention of
this company.”
Jacques’ New New Ford
Ford + Microsoft
Ford + Yahoo!
Ford + Oracle
Ford + HP
Etc.
Etc.
64/24
Goal?
“There’s going to be a
fundamental change in the
global economy unlike
anything we have had since
the cavemen began
bartering.”
Arnold Baker, Chief Economist,
Sandia National Laboratories
“I genuinely believe we
are living through the
greatest intellectual
moment in history.”
Matt Ridley, Genome
“Medicine looks likely to
change more in the next 20
years than it has in the last
200.”
British Medical Journal (11-11-99)
???????????????????
Warner Lambert
&
Pfizer
“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
Q: What do you do when
you are a big,
dopey company and out of
ideas?
A: You merge with
another big,
dopey company that
doesn’t
have any ideas either.
R: An incredibly big,
incredibly dopey
company
… going nowhere.
“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
“I feel betrayed. I bought stock in a
company that was going to change
the world. I didn’t buy a big, fat,
stupid conglomerate. And now
I’ve got one.”
Alan Towers, consultant, quoted in Business Week
[BW: “The irony is that AOL Time Warner is a vertically
integrated conglomerate. Not exactly the sort of nimble
competitor that will thrive in cyberspace.”]
“Talent” and a $2T
enterprise??????
“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
And …
Jorma Ollila
Jim Crow
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
“R & D”
Intel’s venture fund:
275 investments, $3.5B
Source: Fast Company (12-99)
EcoNets/Internet Zaibatsus
“The model is about partial acquisitions
and ownerships that then form a whole.
Each part has to have value separately,
be able to raise capital separately, and
motivate employees separately.
Corporations of the past never had that.”
Flip Filipowski, divine interVentures (Red
Herring)
“The brick and mortars will die, no
matter what. … So you have to take
your best employees and best
businesses and spin them off and
just own 40 percent of everything
that’s left. Do that and you
survive.”
Flip Filipowski, divine interVentures
(Red Herring)
T.T.D.
What are the specifics of
your [personal, unit]
“Forgetting Strategy”?
Notes Page
• Discuss the idea of “learning” versus
“forgetting.” I THINK THIS IS A LOT MORE
THAN A “SEMANTICS DEBATE.”
Assuming you agree with me, what – very
specific – steps are you taking to move
beyond the Assumptions du Jour? Hint:
This holds for a 1999 dot.com startup as
much as for an elderly company.
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.
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
[E.g.: Craig Venter/
Celera Genomics]
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“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
BW: “human brain has only a short time left as
the smartest thing on earth”/ “subjugate
humanity by 2050”
Health Forum Journal: “In one generation or
less, every element of health care, every
assumption, will be changed or gone.”
Dr. George Poste, SKB: 500 molecular targets
in ’95 to 70,000 in ’99/ 35 compounds
per year to 2M
Wired [Feb 2000]
“Cyborg
1.0: Kevin
Warwick Outlines His Plan
to Become One with His
Computer”
“Capitalism and democracy are the two dominant
forces of modern history; they unleash human
creativity and energy like nothing else. But they are
also forces of destruction. They destroy old orders,
hierarchy, tradition, communities, careers, stability
and peace of mind itself. The challenge of the West in
the next century will be to find ways to channel the
sweeping power of these two - the last surviving big
ideas - as they reorganize all human activity.
Otherwise, for much of the world, it may be too
fast a ride.”
Newsweek 12-99
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!
Message from Seattle?
Top 3 Americans >
48 poorest nations
Source: Newsweek 12-99
[Visit India …
every 24
months.]
Brand Inside
PSF 1:
Brand Org!
108 X 5
vs.
8 X 1*
* 540 vs. 8
ERP, ECM, Web, Etc.
IT’S THE GIANT SUCKING
SOUND
OF SLACK BEING
EXTRACTED FROM
THE GLOBAL ECONOMY!
White Collar Revolution
(Finally!!)
90% … in 10 years!
PSFs ….. All!
Brand Yous … All!
WOW Projects … All!
“The coefficient of friction
associated with the grunge
of business is amazing!”
Michael Schrage
Cemex and FDX!
CCC Information
Services!
Swissair
e>booking
e>ticket
e>check-in
e>track
e>info
Oracle and Ford!
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.
“Don’t own nothin’ if
you can help it. If you
can, rent your shoes.”
F.G.
And …
50M @ $20,000 = $1T*
*Michael Dertouzos, MIT, on India’s
“back office” outsourcing potential
[02-08-00/Delhi]
RR on Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon
* ’twixt docs, patients and providers; $250B in
waste (?); source: Michael Lewis,
The New New Thing
SoftWatch (MS)
“Manage relationships across the healthcare
continuum”/ Amir Kishon
Establish e-relationships with customers/retain
customers/collect data
Patients record info + receive feedback/ Online
access to nurses
Community with others with MS
Etc.
Source: Start-Up
Hewitt & HMO e-bids!
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
[And: Enron!]
“UPS used to be a trucking
company with technology.
Now it’s a technology
company with trucks.”
Forbes (1-00), on UPS’s $11B spent on IS in
the 90s; UPS was Forbes’ “Company of the
Year”
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?
TRUST*
*Now … more than ever!
[ 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]
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”?
Credo
“WORK
WORTH
PAYING FOR”
T.T.D.
!!!!!!!!!!!!!!!!!!!!
Notes Page
• What is the “bottom line” – WORTH
PAYING FOR – for every project your unit
[or you] has going?
PSF 1.0
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
“support function” / “cost
center” / “bureaucratic
drag”
or …
“Rock Stars of the ‘Age of
Talent’ ”
“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.
Seminar Y2K
Message:
Distinct … or
Extinct!
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!
T.T.D.
MEASURE … NOW
… DAMN IT!
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.]
E.g.: WOW Scale
1. … Dull as dishwater
.
5. … Gets the job done
.
7. … “Good work!”
.
10. … A serious “Braggable”!
Kaiser: 4.15.29
Liberty Ship
2 years
240 days
9 hours
4 days, 15 hours, 29 minutes
[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
“Good prototypes have
‘charisma.’ They create narratives
… tell stories.”
Michael Schrage, Serious Play
“I view models and
prototypes as the
battleground for thoughts
and behaviors.”
Michael Schrage
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
Prototyping Logic/Magic
1. Start Doin’ Stuff!
2. “Doin’ Stuff” Launches a
Rich Dialogue!*
* No “stuff” = No dialogue! [No baloney!]
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: Go horizontal: Find
a (one!) “line” ally in “the Boonies”
Secret No. 2: “Powerless” allies are
Cool!
Secret No. 3: Passion Rules!
Secret No. 4: Become a Prototyping
Maniac!
Secret No. 5: Embrace Politics /
“Community Organizing”!
Notes Page
• Main Idea: YOU ARE NOT “POWERLESS.”
Seek out allies in strange places … and
get going! DO NOT WASTE TIME
“SELLING UP.”
K2K
Reference:
Rules for Radicals,
Saul Alinsky
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)
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!
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)
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
1) Turn ignition key.
2) Shift into drive.
3) Press foot firmly on the
throat of mediocrity.
Source: Mercedes ad
[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
MESSAGE: THE
WORK MATTERS!*
*Sorry, Scott!
Seminar Y2K
Message:
Distinct … or
Extinct!
Brand Inside
PSF 3:
Brand You!
“The fundamental unit of the new economy is not
the corporation, but the individual. Tasks aren’t
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.”
Thomas Malone and Robert Laubacher
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” Eval
– I am known for [2 to 3 things]
– 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 include …
–My resume is discernibly different
from last year’s at this time …
T.T.D./Personal “Brand Equity” Eval
– I am known for [2 to 3 things]
– 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 include …
–My resume is discernibly different
from last year’s at this time …
Notes Page
• Work your tail off on this. THIS IS A VERY
SERIOUS EXERCISE. We have chosen
these categories very carefully.
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
“The Brand Called URL”/
Nathan Shedroff, Vivid Studios
“24 X 7 storefront
devoted exclusively to
The Brand Called You.”
T.T.D./Soooo…
How’s your
Web site?
Notes Page
• So … how is it? MY 18-YEAR-OLD SON
HAS ONE! It’s fly-phat.
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.
“Temporary workers used
to be at the low end of the
workplace food chain. …”
The Wall Street Journal
Training Y2K
Anytime, anywhere!
Whatever!
Concocted by the employee
[“Training Account”]
“When was the last
time you asked,
‘What do I want to
be?’ ”
Sara Ann Friedman,
Work Matters
There comes a
time in everyone’s
life when they
realize they work for
a dead guy.
FreeAgent.com [ad]
“Everything can be taken from
man but one thing: the last of
human freedoms - to choose
one’s own attitude in any set of
circumstances, to choose
one’s own way.”
Victor Frankl, Auschwitz survivor
Seminar Y2K
Message:
Distinct … or
Extinct!
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.]
[ 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 Parcells’ World/
Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
TRUST*
*Now … more than ever!
Brand Inside
PSF 4:
Brand Talent!
Issue Y2K
The Great War
for 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
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!
“Recruiting college students
is a job for marketing, not
HR.”
Jeff Daniel, collegehire.com
“Talent” and Work Space:
A Grossly Neglected Connection!
“Imagine working for a company that not only
understood that the best ten hours of your day
are spent at work - but did everything in its
power to make them energizing, rewarding and
productive as possible. Imagine coming to
work each day in a building that greeted every
person as a creative, entrepreneurial,
exciting person.”
Rosemary Kirkby, Lend Lease,
proposal for headquarters of MLC
“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
“The boundaries for
acceptable weirdness have
dramatically expanded.”
Michael Schrage
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.)
“Every school I visited was
participating in the systematic
suppression of creative
genius.”
“From cradle to grave the
pressure is on: BE NORMAL!”
Gordon MacKenzie
“Where do good new ideas come from? ...
That’s simple! From differences.
Creativity comes from unlikely
juxtapositions. The best way to
maximize differences is to mix ages,
cultures and disciplines.”
Nicholas Negroponte
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”
H.R. to H.E.D. ???
Human
Enablement
Department
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!
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.
Flair! Sparkle! Don’t
call me
“Competent”!
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 War Y2K!
–All out!/ Time consuming!
–Never ending!/ Unwinnable!
–Includes everybody!/ Everybody’s
game! (“We’re all in sales.”)
–Expensive!
–Cool!/ WOW!/ Fun!/ Creative!
–Strategic!/ Core competence!
Talent War Y2K!
–Basis of Brand!/ WHO WE ARE!
–Brand You within Brand Us!
–Encompassing!/ Cultural!
(KEWLNESS: mine v. yours)
–Substantive!/ “The best Projects
win!” [Cairo 12-99]
Big Co.: The Saving Remnant
Toy Store*
Resources
People
Distribution Channel(s)
* “Make your own McKinsey” (AP)
Talent = Brand
Brand Outside
=
Brand Inside
“Emotional values are replacing physical attributes
as the fundamental market influence.”
“This book is concerned with self-worth and belief.”
“In the international market, it is no longer products
that compete, it’s concepts.”
“Only with a strong spirit at its foundation can a
company achieve strong market position.”
Jesper Kunde, Corporate Religion
TRUST*
*Now … more than ever!
T.T.D.
Construct a formal
“Great War for Talent
Strategy” for
your unit!
Notes Page
• Key word: FORMAL!
Seminar Y2K
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, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
6 Sigma or
“Jazzy Offerings”?
WSJ/2-9-00: Nokia extends
market share lead [22.5% in
’98 to 26.9% in ’99] over
Motorola [19.5% to 16.9%]
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
T.T.D.
Discuss: Is “10X/10X”
rampant in your
industry?
Notes Page
• Are you frustrated? That is, doing “much
better work” … but not standing apart
from the herd? Hint: This suggested
analysis pertains to the internal Training
Dept. as much as to the New Products
gang. BE BRUTALLY HONEST
CONCERNING THE DEGREE TO WHICH
“WE REALLY STAND OUT” … OR DON’T!
TP’s Campaign Y2K
Just say [shout]
“No!”
to the “inevitable
commoditization” of
anything.
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!
T.T.D.
And your favorites?
Why? (Pay attention to the flavor of
the words you use)
Translation to your/
“finance world,” etc.?
Notes Page
• Think about the words you use to
describe “stuff” you really LOVE. Do
those terms apply to your unit’s products
and services? If you talk about a
“compelling” movie or novel or theatrical
performance, why not a “compelling
business process”?
T.T.D.
What words do you & yours
use to describe Customer
Contentment? [Way]
beyond “satisfaction”?
[DO SUCH WORDS
MATTER?]
Notes Page
• PLEASE [REDUX]: PAY LOTS OF
ATTENTION TO WORDS … AND THE
EMOTIONAL “SIGNS” THEY CONNOTE.
[TomWorld: What applies to a Detroit Red
Wings “performance” ought to apply to a
“Purchasing Dept. performance”!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: 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
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
“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.”]
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
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: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 2:
Master
E-Commerce!
$35,000,000. = ???
Dell’s Web sales …
daily
350,000 = ?????
New items going on sale at eBay …
daily (12-99)
[AOL delivers
more mail than
the USPS!
Source: Fortune 2-00]
2X = 100 days
(Internet traffic)
2X = 9 months
(network capacity)
Source: Red Herring (1-00)
Time to 50M Users
Radio … 38 years
TV … 13 years
PC … 16 years
Internet … 4 years
Source: Business 2.0 [01-00]
T.T.D.: Study!!
Business 2.0
Red Herring
Wired
Read:
Notes Page
• YOU MUST [M-U-S-T] BECOME AN AVID
INTERNET STUDENT! PERIOD! SO …
HOWYADOING?
Tomorrow Today: Cisco!
$7B of $10B
Save $500M (service and tech
support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms ($1B?)
And Larry?
Business 2.0: “20 Industries About To Be
Fossilized by The Net” (3-99)
Travel Agents ($2B now, $30B in 2003);
Apparel (1-21); Autos (4-213);
Home Electronics (1-21); Paper and
Office Supplies (1-65); Food (<1-54);
Utilities (7-170); Computing (20-400);
Newspapers ($5B of $19B classifieds)
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
T.T.D.: Message!
COMMUNITY!/
COMMUNITY
SERVICES!
Notes Page
• Web Secret No.1: COMMUNITY – as in,
User Community – RULES! So: How do
your online Community Development
Activities rate?
B2B
1999 – 2004: 50X
2004: $7.4 T
Source: GartnerGroup
(per Reuters 1-26-00)
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
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
“Autoweb. Take the Wheel.”
- Advertising Age
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”
“IT enables total
transparency. People with
access to relevant information are
beginning to challenge any type of
authority. The stupid, loyal and
humble customer, employee or citizen
is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
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
“Welcome
back, Tommy!”
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”?
“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!
Nielsen/Designing Web Usability
All Web projects are customerinterface projects!
Simplicity rules!
Make it easy for customers to
perform useful tasks!
Less “cool,” more useful!
Speed rules!
Nielsen/ Continued
Must work … on a small screen!
Must work … w/o graphics loading!
“Scannability” rules! [Users pick out
key words.]
Navigation page: No scrolling!
Remember: 25% to 50%
“successful use”
T.T.D.: Message!
SIMPLICITY!
Notes Page
• READ JAKOB NIELSEN’S BOOK! Hold
your site to the Exacting Nielsen
Standard! [Be ruthless … on yourself.]
T.T.D./Read This!
Jakob Nielsen
Designing Web Usability:
The Practice of Simplicity*
*www.useit.com
“The Net hasn’t lived up to its
hype. It’s a distant, cold, alien,
threatening world called
‘cyberspace.’ The challenge is to
make the Net into something
intimate, warm, friendly, useful,
personal.”
Carly Fiorina, CEO, HP @ Comdex ’99
T.T.D.: Message!
Friendliness!
Notes Page
• Is our Site – including B2B sites – “a place
called home”?
“Even if executives of established
businesses grasp the impact of new
technologies … they still face a massive
competitive disadvantage precisely
because they are incumbents. … They
do complex financial calculations and
get bogged down in internal political
debates. Insurgents have no such
inhibitions.”
Philip Evans & Thomas Wurster,
Blown to Bits
“ … if they set up a
completely independent
organization and let that
organization attack the
parent.”
Clayton Christensen,
The Innovator’s Dilemma
The Way “They” Talk!
“I have this chance for …
changing the world.”
Marco Boerries, Sun, re StarOffice
(Business 2.0, 2-00)
“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)
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
Web Strategy: GE Power Systems
“Launch and Learn”
(4 sites in 30 days)
Goodhome.com
Ready.
Fire!
Aim.
Ross Perot, Wayne Calloway,
Harry Quadracci, et al.
[He who has the quickest
O.O.D.A. Loops* wins!
*Observe. Orient. Decide. Act. /
Col. John Boyd]
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 3:
Women Rule!
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
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*/20M+/$4T
[> Germany]
* 400K in ’72; 132% since ’92;
source: NFWBO, Cognetics
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!]
T.T.D.: Study!
Does anybody in your
industry do “it” right?
Brilliantly?
[If so … how?]
Notes Page
•STUDY!
[Damn it!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.
“He simply wants the transaction to
take place. She’s interested in creating
a relationship. Every place women go,
they make connections.”
“Men seem like loose cannons. Men
always move faster through a store’s
aisles. Men spend less time looking. They
usually don’t like asking where things are.
You’ll see a man move impatiently
through a store to the section he wants,
pick something up, and then, almost
abruptly he’s ready to buy. … For a
man, ignoring the price tag is almost
a sign of virility.”
Paco Underhill, Why
We Buy* [*Buy this book!]
Women and 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
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
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
T.T.D.
Do you [clearly]
understand the
difference between
men’s and women’s
purchasing habits?
Notes Page
• Again:
STUDY!
took me years to get a handle on “this
stuff.”]
[It
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
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
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 …
T.T.D.
What would it take to get
you & yours to “Go For
It”?
First steps?
Notes Page
• What could you do – in the next 30 days –
to begin to test these ideas? Define 10
actions!
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!”
“Experiences” vs. Products
Design revolution!
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: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 4:
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.
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) ]
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!
Susan Sargent Designs:
PLEASE COMPLAIN!
Thanks for your order!
We dearly want everything
to go p-e-r-f-e-c-t-l-y!
If the order was late. Or wrong.
Or if any of the goods are damaged in the
slightest.
Or if you’re just having a lousy day and
want to unload on someone …
Call our Customer Care Hotline!
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.]
WEB Words: TP
NO CLUTTER!
“When you click on Yahoo!
today you get the same
simple, nearly graphics-free
home page you would have
seen had you clicked three
years ago.”
Fortune, on Zod Nazem,
Yahoo! CTO
No Clutter!
CNNSI.com developed an increasingly common
problem. In the midst of adding material, its
design went bad. CNNSI became so packed with
links, new sections and graphics that it actually
became hard to find something as basic as the
score of last night’s ballgame. Then it got worse.
The team tried to make new graphic elements
eye-catching enough to stand out from the site’s
clutter. But the surfers ignored them, thinking
they were ads.”
Business Week [9-99]
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!]
Huge
Opportunities
[That Damn Few Are Pursuing!]
Women!
The rapidly aging population!
Design!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater &
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
Safe, On Time and …
“We defined personality as a
market niche. We seek to
amuse, to surprise, to
entertain.”
Herb Kelleher, Main Man,
LUV Airlines
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
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 Theater & Every Business a Stage
“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!
“Cars are not simply to get you
from place to place. They ought to
be entertainment. We
are sort
of in the entertainment
business.”
J Mays, Ford
“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
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.]
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Bottom Line: Glorious Age of the
BRAND!
[ “Take Home Value”
Road Warriors: Cast Off Your Blands/
Free Your Taste Buds
Tabasco Sauce
Dijon Mustard
Balsamic Vinegar ]
Brand Outside
BRAND POWER!
T.T.D.
How do you [&
yours] define
“brand”?
Notes Page
• It sounds Elementary. It’s not! DISCUSS:
WHAT IS A
BRAND [THAT MATTERS]?
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]
“What Matters to Online Buyers”*
#1: Product brand
#2: Retailer brand
*Source: Business 2.0
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
“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
T.T.D./Calling the
Corporate Shrink!
“Organizational
Psychotherapy”/
WHO WE ARE!
Notes Page
• This is The Big Enchilada:
SPEND – lotsa – TIME
ON IT!
“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
“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
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 = Special =
Passion =
Connection =
Caring*
* (Way) beyond “market research”
“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
The Ten Rules of Radical Marketing
CEO must “own” the marketing function!
Hyper-lean Mktg. Dept. (No filters!)
CEO hangs out with customers!
Love + Respect your customers!
Just Say No … to market research!
Hire only passionate missionaries!
Create a Community of users-customers!
Emphasize one-to-one marketing tools!
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?]
Brand Leadership
Lead Out Loud!
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
“If you want to be persuasive, you have to
generate a high level of energy. It’s energy
that makes you visible, that gives you
presence. I call it ‘performance energy,’
and it’s the basis of dynamic leadership.
There is nothing artificial about it. Performance
energy is an authentic part of who you are. You
just have to access it.”
Martha Burgess, Theater Techniques for Business
People
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
T.T.D.
Evaluate yourself
[unsparingly] as an
[enthusiastic]
“performing artist”!*
*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.”]
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!
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti