Tom Peters Seminar2001
We Are in a
Brawl with No
Rules!
MASTER/09.19.2001
“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
Facts: It could happen again. (2) It
could be much, much worse (e.g.,
nuclear satchel charges, bio-agents).
Quandaries: (1) Who is the enemy? (2)
Where is the enemy? (3) How do you
use “modern” weapons & forces to
combat 50 hyper-fanatics armed with
penknives and box cutters? (4) How
did we get into this pickle? (5) Why
are we so hated by some?
B, C, P, R, S know about as much
WE
ARE IN A
BRAWL WITH
NO RULES.
as you and I know.
(1) Best
offense: Pen knives.
(2) Best defense:
CELL PHONES!
The “New War”:
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs
of Staff
BmC: (1)
Hierarchy vs.
“Network organization.” (2)
NWO = “Doctrine as center
of gravity”/motivation,
distributed support &
decision-making, “outside
the military sphere.”
Read …
6 Nightmares: Real Threats
in a Dangerous World and How
America Can Meet Them, Anthony
Lake.
Lifting the Fog of War,
Admiral Bill Owens
All Slides Available at …
tompeters.com
More at …
tompeters.com
Slides from this seminar;
Master Presentation, for in-depth;
annotated Special Presentations
[Women Rule!, Design!, etc.].
“Cool Friends” (referenced in seminar).
Discussions re this stuff.
Calendar of events.
Note: Lavender text in this file is a link.
“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
“In 25 years, you’ll
probably be able to get the
sum total of all human
knowledge on a personal
device.”
Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T]
[Barron’s 11.13.2000]
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
“We are entering an era of no
limits, with nothing to brake the
cascade of human intelligence
unleashed by the Information Age.
The Web essentially allows all the
brains on earth to communicate
and share insights in real time,
around the globe, all the time.”
Jeffrey Young, Cisco Unauthorized
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger
between humans and computers that is so
rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
“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
CEOs appointed after
1985 are 3X more likely
to be fired than CEOs
appointed before 1985
Warren Bennis, MIT Sloan Management Review
Forbes100 from 1917 to 1987: 39 members of the
Class of ’17 were alive in ’87; 18 are in ’87 F100; the
18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the
market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500
outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the
Market
Are all CEOs
bozos? Was Darwin a
Message*:
genius, or what? So,
Boss
Man, whadda you say
about “risk taking” now?
*And “all that” (2 of 100; 12 of 500) was in relatively placid times.
“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
“A pattern emphasized in the case
studies in this book is the degree to
which powerful competitors not only
resist innovative threats, but actually
resist all efforts to understand them,
preferring to further their positions in
older products. This results in a surge of
productivity and performance that may
take the old technology to unheard of
heights. But in most cases this is a sign
of impending death.”
Jim Utterback, Mastering the Dynamics of Innovation
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work
well for about half the patients for whom they are
prescribed, and experts believe genetic
differences are part of the reason. The
technology for genetic testing is now in use. But
the technique threatens to be so disruptive to the
business of big drug companies – it could limit
the market for some of their blockbuster
products – that many of them are resisting its
widespread use.”
The Wall Street Journal (06.18.2001)
HP.
Xerox. IBM.
DEC. Kodak.
Western Electric.
TP’s Times Past with MUs*:
*Masters of the Universe
“The Internet is not
going away – but
flawed business
models are.”
fool.com
Dotcoms … drew old economy companies’
attention to a new “do it all” way of getting consumers’
interest [e.g., convenience, selection, price @ amazon]
Revamped business-to-business relationships,
resulting in greater value, efficiency, and better service
Sped up decision-making and forced older firms
to be more adaptable
Created new [activist] board models
Changed the talent side of the equation and
encouraged healthy changes in the work environment
Source: Leo Higdon, president, Babson College
“We are in a
brawl with no
rules.”
Paul Allaire
“Most of our
predictions are based
on very linear thinking.
That’s why they will
most likely be wrong.”
Vinod Khosla, in “GIGATRENDS,” Wired 04.01
The Kotler Doctrine:
1965-1980: R.A.F.
(Ready.Aim.Fire.)
1980-1995: R.F.A.
(Ready.Fire!Aim.)
1995-????: F.F.F.
(Fire!Fire!Fire!)
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge
customers on the attack.
2. Time cannot be sacrificed for better quality,
lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire
leading technology. Our job is to provide the technology
and products our customers need.
4. Success is achieved by leading change,
not waiting for it.
5. We are paranoid about our leadership – willing to
cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
“The highest performing companies have
well-developed systems for killing ideas
their customers don’t want. As a result,
these companies find it very difficult to
invest adequate resources in disruptive
technologies—lower margin opportunities
that their customers don’t want—until they
want them. And by then it’s too late.”
Clayton Christensen, The Innovator’s Dilemma
“BIG DRUG MAKERS TRY TO POSTPONE
CUSTOM REGIMENS. Most drugs don’t work
well for about half the patients for whom they are
prescribed, and experts believe genetic
differences are part of the reason. The
technology for genetic testing is now in use. But
the technique threatens to be so disruptive to the
business of big drug companies – it could limit
the market for some of their blockbuster
products – that many of them are resisting its
widespread use.”
The Wall Street Journal (06.18.2001)
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
Read It Closely: “We
don’t sell
We
sell speed.”
insurance anymore.
Peter Lewis, Progressive
JY: Who do you fear most, big
companies or start-ups?
JC: I have a list with a dozen little
companies I’m tracking closely. Guys
who can start with a fresh sheet of
paper have an enormous advantage
technologically. We have to carefully
integrate new capabilities into our
existing product line, they don’t.”
Source: Cisco Unauthorized
Pharmacogenomics: End of Blockbusters
by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for
the industry. The implications for existing
business models are devastating.” Allen Roses,
SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences,
PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble
and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
I Believe …
1. Change will accelerate. DRAMATICALLY.
2. We will RE-INVENT THE WORLD IN THE
NEXT TWO GENERATIONS. (Business …
Health Care … Politics … Fundamentals of
Human Interaction.)
3. OPPORTUNITIES are matchless.
4. You are either … ON THE BUS …
or … OFF THE BUS.
5. THIS IS ALL GREAT FUN! I WANT
TO PLAY! AND YOU?
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
TOPICS. BRAND INSIDE. Forces at Work II:
The Destruction Imperative. Brand Org: Lean,
Linked, Internet-driven, Virtual. Brand Work:
The Professional Service Firm Model. The
Heart of the V.A. Revolution: PSF Unbound.
Brand You: Distinct … or Extinct. Redefining
the Work Itself: The WOW Project. Brand
Action: Getting Started (when You Are
“Powerless). Brand Talent: The Great War for
Talent. Brand Talent+: The Education Fiasco.
Summary: The High Standard Deviation
Enterprise.
TOPICS. BRAND OUTSIDE. Forces at Work II:
The Sameness Trap. Strategy 1A: Use Ecommerce to Re-invent Everything. Strategy
1B: Healthcare et al.: Embracing an e-Led Age of
Self-determination. Strategy 2A: Women Rule.
Strategy 2B: Welcome to “Old World.” Strategy
2C: Welcome to “Green World.” Strategy 3A:
Design Matters. Strategy 3B: It’s the
Experience. Strategy 3B1: A case in Point: The
Four Seasons. Strategy 4: Brand Power.
TOPICS. BRAND LEADERSHIP. Passion
Rules.
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
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
“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)
“When asked to name just one big merger
that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
I’m sure
there are success stories
out there, but at this
moment I draw a blank.”
Committee, answered:
Mark Sirower, The Synergy Trap
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
Peter Job, CEO, Reuters
“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
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a
romantic notion. Large companies are
incapable of ongoing innovation, of
ongoing flexibility.”
“Increasingly, successful businesses will
be ephemeral. They will be built to yield
something of value – and once that value
has been exhausted, they will vanish.”
Fast Company (03-00)
Lessons from the Bees!
“Since merger mania is now the rage, what lessons can
the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of
growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The
point is that unlike corporations, which just get bigger,
bee colonies know when the time has come to split up
into smaller colonies which can grow value faster.
What the bees are telling us is that the
corporate world has got it all wrong.”
David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
“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
“Chivalry is dead. The new code of conduct is
an active strategy of disrupting the status quo
to create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of
Strategic Maneuvering
“The difficulties … arise from the inherent conflict
between the need to control existing operations and
the need to create the kind of environment that will
permit new ideas to flourish—and old ones to die a
timely death. … We believe that most
corporations will find it impossible to match or
outperform the market without abandoning the
assumption of continuity. … The current
apocalypse—the transition from a state of continuity
to state of discontinuity—Has the same suddenness
[as the trauma that beset civilization in 1000 A.D.]”
Richard Foster & Sarah Kaplan, “Creative Destruction”
(The McKinsey Quarterly)
“The Futility of Size …
“[Regarding this issue] the new
process of virtualization fully asserts
itself. Virtualization is the recognition
that territorial size does not solve
economic problems. … Economic
access must become the substitute for
increasing domain.”
Richard Rosecrance,
The Rise of the Virtual State
“The corporation as we know it,
which is now 120 years old, is
not likely to survive the
next 25 years. Legally and
financially, yes, but not
structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
“The Word(s)” on Vitality:
Gary Hamel
“Sell By” [jettison old crap]
Spin Out [support entrepreneurs]
Spin In [buy young firms]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth,
Lockheed, Coca-Cola
RM: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.”
Kevin Kelly
“In Italy for thirty years under the
Borgias they had warfare, terror,
murder, bloodshed—and produced
Michelangelo, da Vinci and the
Renaissance. In Switzerland they had
brotherly love, 500 years of
democracy and peace, and what did
they produce—the cuckoo clock.”
Orson Welles as Harry Lime, “The Third Man”
Japan’s Science Gap *
Rice farming culture: Uniqueness suppressed.
Gov’t control of R & D. Promotion based on
seniority. Consensus vs. debate. (U.S.: friends can be
mortal enemies.) Bias for C.I. vs. “bold leaps.” Lack
of competition and critical evaluation (peer
review). Syukuro Manabe: “What we need to
create is job insecurity rather than
security to make people compete more.”
*Hideki Shirakawa, Nobel laureate, chemistry
Destroy
to Create!
Message:
Jane Jacobs:
Exuberant
Variety vs. the Great Blight of Dullness.
F.A. Hayek: Spontaneous
Discovery Process.
Joseph Schumpeter: the Gales of
Creative Destruction.
Brand Inside
Brand Org:
Lean, Linked,
Internet-driven, Virtual
Headline: “Bank of America to Cut
… 10,000 Jobs”
“Middle-level and senior
managers are expected to be
the principal targets of the job
cutbacks.”
Source: The New York Times (07.29.2000)
White
Collar
Revolution!
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40
“expert” decision rules!
IBM’s Project eLiza!
80,000?
“The coefficient of
friction associated with
the grunge of business
is amazing!”
Michael Schrage
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“Don’t own nothin’
if you can help it. If
you can, rent your
shoes.”
F.G.
Better Red than Dead?/
Better Dead than Red?
“We will see more and
more outsourcing of
discovery processes.”
Craig Venter
Better Red than Dead?/
Better Dead than Red?
“If we completely
outsourced all of our genetic
analysis, we’d be held
hostage by outside people.”
Brian Spear, Director of
Pharmacogenomics, Abbott Labs
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
“For a dollar a month, an Ohio
insurance company will rent you a
GPS receiver to install in your car. As
part of your policy, it signals how
often, when, and which highways you
drive and into which neighborhoods
you go. The premium you pay reflects
your actual driving risk.”
Stan Davis & Christopher Meyer,
futureWEALTH
Cisco, Dell =
Brand-owning companies
that sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism [e.g.: Cisco owns 2 of 38
assembly plants]
Message: The W.C.R. is
inevitable. Lead it. Or
get swallowed by it.
Karl Marx Meets Adam Smith: Lessons from the Bush
(1) Specialization-excellence. (Or death.)
(2) Luck is irrelevant. (In a drought, drought
specialists survive.) (3) Bigger is not
necessarily better. (All hail the termites +
bacteria!) (4) Efficiency matches
effectiveness: no wasted motion, no
bureaucratic B.S., very low “transaction
costs.” (I’net does this. C.f. Dell.) (5) Hyperinterdependence. (The power resides in the
network: Self-organization is the rule. I’net redux. Viral
marketing. “Farm-out” is the norm.)
Brand Inside
Brand Work: 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.
Credo: W.W.P.F.
“WORK
WORTH
PAYING
FOR”
New Orleans
April 2000:
NAPM
You are the …
Rock Stars
of the
B2B Age!
Chicago
November 1999:
HRMAC
“support function” / “cost
center” / “bureaucratic
drag”
or …
Are you “Rock
Stars of the
Age of
Talent”?
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View (Methodology)
W.W.P.F. (100%)/Outside Clients (25%++)
When: Now!
BMW’s
Designworks/USA:
>50% from outside
work
Bill of (SELECTIVE) Rights
YOU HAVE THE RIGHT TO CHOOSE
YOUR CLIENTS! (Wanna be-stay-get
COOL … Work With Cool Clients!)
(YOU ARE YOUR CLIENT LIST.) (LIFE
IS TOO SHORT TO WORK WITH
JERKS.) (Mass marketers: TARGET
INNOVATION. E.g.: African-Americans
… Hispanics … the Aging Population
… Greens … Women)
Culture Change is not “Corporate.”
Culture Change is not a “Program.”
Culture Change does not take “Years.”
Culture Change does not start “Today.”
Culture Change starts Right
Culture Change
Now!
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
What Do I “Do” First?
One Minute
Excellence!*
*Thomas Watson
Brand Inside
The Heart of the Value
Creation Revolution:
PSF Unbound!
11 September 2000
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
[“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard]
HP … Sun … GE … IBM
… UPS … UTC …
General Mills … Springs
… Anheuser-Busch …
Carpet One … Delphi …
Etc. … Etc.
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
“The primary strategic mission
for [CEOJeffrey] Immelt is to
hasten GE’s transformation
from a low-margin manufacturer
to a more lucrative services
company that sells solutions as
much as stuff.”
Newsweek/09.10.2001 (Welch raised share of
services revenue from 15% to 70%)
“Customer Satisfaction” to
“Customer Success”
“We’re getting better at [Six
Sigma] every day. But we really
need to think about the customer’s
profitability. Are customers’
bottom lines really benefiting from
what we provide them?”
Bob Nardelli, GE Power Systems
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4
days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR
RESPONSIBILITY! Why? 9 days =
Client’s World.
Source: Steve Kerr, VP, GE
“In GE’s world there are
fewer but bigger
customers, so there’s a
vital need to maximize
the relationship.”
Newsweek/09.10.2001
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.”
ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles,
from 21 mfg. Sites to 6,000 NA dealers)
Springs
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Design.
Systems & Site mgt.
= Turnkey.
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon/WebMD
* ’twixt docs, patients, insurers and providers;
$275B of $400B in waste; source: Michael Lewis,
The New New Thing
“ ‘Architecture’ is
becoming a commodity.
Winners will be ‘Turnkey
Facilities Management’
providers.”
SMPS Exec
“We are a ‘real estate
facilities consulting’
organization, not just an
‘interior design’ firm.”
Jean Bellas, founder, SPACE (from SMPS Marketer)
HSI/Hudson-Smith International
Mission: “serves as a vehicle for worldclass athletes to receive expert training
and guidance alongside special
management and consultations. … Mr.
Hudson strives to maximize each
client’s profitability, exposure and
success through a hands-on
management environment.”
Source: USAToday 07.05.00 p.1E
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
100% goes on the Web.
Non-awesome is
outsourced.
Centers of Excellence are
leveraged to the hilt!
“Masterful at Something”
Einstein. Niche. (Service
or Sector.) Community
leader. Orchestrator.
Source: Ellen Flynn-Heapes, Creating Wealth:
Principles and Practices for Design Firms
Service-Systems Paradox:
Cut & Grow
Automate 75% of “commodity”
service activities
and/but
Add value via people-intensive
“strategic/systems-integration
activities” (E.g.: Could Sun’s service/sysint
business be 60% of revenues?) (Hiring from
PWC, etc.)
Messages:
Every Dept. = PSF
Or Get Outsourced/
eAutomated.
Now.
Do or Die!
Maybe one [or more] of
your “PSFs”” becomes
the tail that wags the
dog called Market
Cap????? [E.g.: engineeringIS-logistics-customer service]
THIS IS A
BIG
DEAL!
Markets to networks. Hierarchies to networks.
Sellers and buyers to suppliers and users.
Ownership to access. (Age of Access.)
Marginalization of physical property. Weightless
economy. Protean generation. Outsourcing of
everything. Franchising of everything. (Business
format franchising.) (Leasing DNA.) Everything is a
service/platform for services delivery. (Give away
the goods, charge for the services. VALUE = THE
RELATIONSHIP. “Share of market” to “Share of
customer.”) Every business is show business.
Source: Jeremy Rifkin, The Age of Access
Everybody is
going after the
same space!
Problem:
“The e-conomy is one of
re-intermediation, where new
technologies make it possible to
radically increase complexity and
efficiency with the introduction of new
marketplaces. In these markets, value
chains constantly reorganize as
the demands of the consumer and
business change.”
Thomas Koulopoulos, Delphi Group
Brand Inside
Brand You:
Distinct …
or
Extinct
2010 “Demographics”:
By 2010, full-time
workers will be in the
minority
Source: MIT study (28August2000)
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
“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
e-lancers
independent contractors - 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
“New Economy
changes how
firms treat
layoffs”
Headline, USA Today (03.19.2001)
“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 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
Thriving in 24/7 (Sally Helgesen)
START AT THE CORE. Nimbleness only possible if we
“locate our inner voice,” take regular inventory of
where we are.
LEARN TO ZIGZAG. Think “gigs.” Think lifelong
learning. Forget “old loyalty.” Work on optimism.
CREATE OUR OWN WORK. Articulate your value.
Integrate your passions. I.D. your market. Run your
own business.
WEAVE A STRONG WEB OF INCLUSION. Build your
own support network. Master the art of “looking
people up.”
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
“When was the last
time you asked,
‘What do I want to
be?’ ”
Sara Ann Friedman,
Work Matters
“The time seems
appropriate to rethink the
notions of self and
identity in this rapidly
changing age …”
Tara Lemmey, Project LENS, past president
Electronic Frontier Foundation
America[ns] The …
Beautiful Re-inventors
Ben F.
Ralph W.E.
Dale C.
N.V.P.
Werner E./EST
“Tony R.”/“Coals Dude”
Stephen
“No prudent man dared to be too
certain of exactly who he was.
Everyone had to be prepared to
become someone else. To be
ready for such perilous
transmigrations was to become
an American.”
Daniel Boorstin
Brand You, Big Time!
I AM AN
ARMY OF
ONE
THE I work for a
company called Me
STREET JOURNAL
Adventures in Capitalism
THE rise up and flee
your cubicle STREET
JOURNAL
Adventures in Capitalism
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
[“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)]
“You must realize that how you invest your
human capital matters as much as how you
invest your financial capital. Its rate of return
determines your future options. Take a job for
what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with
you for 5 years, how much will they
appreciate? How much will my portfolio of
career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
“Knowledge becomes obsolete
incredibly fast. The
continuing professional
education of adults is the
No. 1 industry in the next 30
years … mostly on line.”
Peter Drucker,
Business 2.0 (22August2000)
T/D > 1.0
3 Weeks in May
“Training” & Prep: 187
“Work”: 41
(“Other”: 17)
1%
vs.
367%
T/D > 1.0
1%
(0.01)
vs.
367%
(3.67)
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:
In Store: International Equality, Intranational Inequality
“The new organization of society implied by the triumph
of individual autonomy and the true equalization of
opportunity based upon merit will lead to very great
rewards for merit and great individual autonomy. This
will leave individuals far more responsible for
themselves than they have been accustomed to being
during the industrial period. It will also reduce the
unearned advantage in living standards that has been
enjoyed by residents of advanced industrial societies
throughout the 20th century.”
James Davidson & William Rees-Mogg, The Sovereign Individual
Work-Life Balance
Madeleine McGrath
& the Suicide
Hotline
Great Great Granddad: Pushes the
plow.
Great Granddad: Horse now walks
ahead of the plow.
Granddad: Farm Hand to
Factory Factotum.
Dad: Factory Factotum to White
Collar Cubicle Slave.
And You: V.A. Player (“Brand You”)
… or else!
Brand Inside
Redefining the Work
The WOW
Project
Itself:
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
Your Current Project?
1. Another day’s work/Pays the
rent.
4. Of value.
7. Pretty Damn Cool/Definitely
subversive.
10. WE AIM TO CHANGE THE
WORLD. (Insane!/Insanely
Great!/WOW!)
“Astonish me!” / S.D.
“Build something great!” /
H.Y.
“Immortal!” / D.O.
Words:
great!
WOW! Insanely
BHAG
(Big Hairy
Make
Something Great.
Astonish Me. Make It
Immortal.
Audacious Goal).
Radicalize
Audiences!*
My GOAL:
*Hint: These are Radical times!
“Learn not to
be careful.”
Photographer Diane Arbus
to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
“He who fears
losing his
reputation is
sure to lose it.”
Napoleon
Message: PSF and WOW
Projects are minimum
W.C.R. survival
strategies. (And a better way
to live.)
Are Your
Projects as “Mad” as
the Mad Times
Demand?
Message/Query:
“On their deathbed, Nobody says,
‘I didn’t spend enough time at the
office.’” TP: ON THEIR DEATHBED
NOBODY SAYS, “WE DOUBLED
MARKET SHARE.” We say, “I
remember that final drive. I
remember the pattern and hip fake
that allowed me to snare the ball.”
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!
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
The following slide begins the
“Boss-Free Implementation of
Stuff That Matters” Section. The
slides in this section are heavily
annotated.
Use Normal or Notes Page View to
access the notes.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
“This is all I
‘know’ in the
world!”
Tom Peters
World’s Biggest Waste …
Selling “Up”
Axiom: Never waste compelling
evidence on people who don’t
agree with you, especially
bosses. The principal purpose
of such evidence is to inflame
people who already agree with
you – to the point that they will
take hard action.
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.
And …
K2KK*
S2SS**
*Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
“I made a note. I’m going after
[PIONEER CO.], not the
two ‘establishment firms’ who
were formerly at the top of my
2001 target list. We need a jolt.
Things are going too well.”
Sales Exec, high-tech superstar
THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Hell-I-Wish-It-WereOver Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our
Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War
for Talent via … a thoroughgoing review
of how safety and environmental
issues contribute to making this a
Great Place to Work?
Is It …
Fix these bloody customer problems that
have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young
division GM on …
using the Internet/Internet Speed to revisit
the entire process of how we get customer
input – before and during the fact – into the
heart of the Product Design Process?
“Little”? Or: “B-I-G”?
U. Of Georgia Dean: “What’s the
best thing the federal government
has ever done for the South?”
G. McGovern: “The New Deal?”
Dean: “No, school lunches.”
(Attendance and test scores
leaped.)
Reframers’ Rules:
Rule 1: Never accept an
assignment as given!
(Please.)
Rule 2: You’re never so powerful
as when you are “powerless”!
Rule 3: Every “small”
project contains the entire
enterprise DNA!
“ ‘Obeying the rules’ is
obeying their rules.
[Women] can never be
powerful as long as they try
to be in charge in the same
way men take charge.”
Harriet Rubin,
The Princessa: Machiavelli for Women
THE TOOL
Prototyping Mania!
Culture of Prototyping
“Effective prototyping may be
the most valuable
core competence an
innovative organization can
hope to have.”
Michael Schrage
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
“You can’t be a serious innovator
unless and until you are ready,
willing and able to seriously play.
‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage,
Serious Play
“Sony Electronics has a wellearned reputation for persistence.
The company’s first entry into a
new field often isn’t very good. But,
as it has shown in laptops, Sony
will keep trying until it gets
it right.”
Business Week (5/01)
“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
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
“Learn not to
be careful.”
Photographer Diane Arbus
to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
“Success is the ability
to go from failure to
failure without losing
your enthusiasm.”
Winston Churchill
(as quoted by John Peterman)
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
He who has the
quickest O.O.D.A.
Loops* wins!
*Observe. Orient. Decide. Act. /
Col. John Boyd
THE SOFT STUFF
Connect!
Message: It’s
Community
Organizing, stupid!
See: Saul Alinsky’s
Rules for Radicals
Are You …
A Viral Enthusiast?
A Closer?
It AIN’T
about the science. It’s
NEVER about the
science. It’s ALWAYS
about the PASSION for
the IDEA.
Message to “scientists”:
Fact: 1000s of
PLAUSIBLE drug
candidates. Winners
based [mostly] on desire &
tenacity of Project
Manager/Team
Politics
Rules!
Project Team Golden
Leadership Triangle
(1) Champion-Maniac.
(2) Implementer-Pol.
(3) Schedule &
Budgets Fanatic.
“In a long and honorable
career, a Ph.D. scientist
in a pharmaceutical
house is not likely –
statistically – to
experience a success.”
Pharmaceutical Exec
TP:
Rubbish!
“Statistically speaking,” Churchill
shouldn’t have been able to fend off
Hitler. “Statistically speaking,”
de Gaulle shouldn’t have been able to
revive the French. “Statistically
speaking,” Jefferson & Adams &
Hamilton shouldn’t have been able to
create America.*
* “Statistically speaking,” Pfizer or no Pfizer,
ain’t none of us getting’ out of this alive.
I wonder …
Will
one
of you be awoken
some December morning
in Stockholm by candle-carrying
kids?
SOME OF YOU IN THIS
ROOM WILL BE ARCHITECTS OF
A SUCCESSFUL NEW DRUG.
WHY: SCIENTIFIC PROWESS,
3.7%; PASSION & DRIVE &
SALESMANSHIP & POLITICAL
SAVVY, 96.3%.
Mark McCormack on Champions
“profound sense of
dissatisfaction”
“peak at the right moment”
“killer instinct”
mean
“A real superstar is
in a
particular way. He is Michael Jordan or
Cal Ripken, greedy for records and
history. Armored and self-contained, his
inner core is a hard knot of physical
talent and fierce will. Nothing penetrates
that core, and anybody or anything that
gets too close is out of his life.”
Michael Sokolove, “The last Straw”
“I think I’m happy. It
may not seem like I’m
happy on my face, but
I’m also greedy. And
I’m not done.”
Shaq O’Neal, on why he didn’t go nuts when the
Lakers finished the best NBA post-season ever
“Ace Greenberg [Bear Stearns]
once said he didn’t give a hoot
about job applicants’ education as
‘a deep
desire to become
rich.’ ”
long as they had
Time (06.25.01)
“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
“It is impossible to claim that all good teachers
use similar techniques: some lecture nonstop
and others speak very little; some stay close to
their material and others loose the imagination;
some teach with the carrot and others with the
stick. But in every instance, good teachers
share one trait: a strong sense of personal
identity infuses their work. ‘Dr. A is really
there when he teaches.’ ‘Mr. B has such
enthusiasm for his subject.’ ‘You can tell
that this is really Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
“One student said she could not
describe her good teachers because
they differed so greatly, one from
another. But she could describe her
bad teachers because they were all
the same: ‘Their words float
somewhere in front of their faces, like
the balloon speech in cartoons.’ ”
Parker Palmer, The Courage to Teach
P.S. …
5,000
miles for a 5
min. meeting.
Mark McCormack:
“The two most
powerful things I know
in existence:
a kind word and a
thoughtful gesture.”
Ken Langone, CEO, Invemed Associates [from
Ronna Lichtenberg, It’s Not Business, It’s
Personal]
P.S.: Women are more predisposed to the stuff in this
section. Right?
THE PROCESS
Summary
Boss-free “Selling” of a WOW! Idea
Get a Zany [WOW!] Idea/
Shop it with a coupla good pals.
Surface [using your network] a list of [operational]
folks who might be interested in playing.
Call, visit and choose a coupla prospects.
Engage the prospects [they must “own” “it”].
Concoct a rough plan and a prototype schedule.
Move forward [Ready. Fire! Aim.].
Keep on recruitin’.
Get the Test Customer to recruit some buddies for
Round #2 tests [Meanwhile Customer #1 expands
program]
Boss-free “Selling” of a WOW! Idea (cont.)
Get going with Round #2 prototypes
Start conscious “buzz building” [Let “the word” of
successful tests trickle out]
Have the “line dudes” put on a demo for, say, a coupla
“cool” regional bosses
Etc.
Etc.
Have the growing Network of Converts initiate a Major
Program Proposal
Etc.
Etc.
Boss Advice I: The “Poster Kids”/
“End Run”/“Skunks” Strategy
Chat up a cross-section of the Org.
Develop a tentative list of Pioneers/“Skunks.”
Hang with those Skunks, discover their
“stuff I’ve long wanted to do”/Encourage
them to “Do it!”
Begin to showcase their developing results
[with your public stamp of approval].
Dip deep[ish] and early - promote a Super
Skunk into the [New] Establishment.
Incorporate the Skunks’ work into your Vision
Chatter/Welcome ALL aboard!
Boss Advice II: Starting the “Hmmmmm?” Buzz
“Event Marketing”: Idea Faire/Internal
“Tradeshow”/Bragfest. Or: Seminar Series, with
“strange” outsiders/insiders (not the usual suspects);
intense Web-based follow-up and community creation
(Neighborhoods of Common Interest).
“Play Fund,” around a topic of importance. Small-ish
grants. Easy application process. Short-ish
timeframes. (Gerstner @ American Express re AI.)
“Scholarships” (not the usual suspects). Sabbatical
funds (contest?). Placement on customer or supplier
project teams (not the usual suspects).
Boss Advice III: The “Flypaper Strategy”
Don’t try to “change the culture”!
Do create fly paper which attracts
Mavericks & Pirates!
Let the new culture (which is already
lurking around you) find you!
Publicize, at the appropriate moment, the
New Hall of Fame; help the New Culture
Adherents create & nurture Community!
The “Flypaper/Epidemic
Strategy”: Trolling for would-be
Revolutionary(ies). Age & rank &
size of org do not matter/passion
rules (Gap’s 27-yr-old; Rajat; OSHA Maine;
Anthem NH). (Hmmmm. Maybe size & rank do
matter??) (“I won’t help you get promoted. I will help
you start a revolution/epidemic.”) Help
the
infected one(s) become “carriers;”
study epidemiology. MBSA.
QCC/Quick Culture Change
Hire Weird
Promote Deep
Rule of Three
(3 = Critical Mass)
The Golden Triangle: (1)
Creator-InventorVisionary … (2) Talent
Fanatic … (3) Inspired
Profit Mechanic.
Project Team Golden Triangle
(1) Champion-Maniac.
(2) Implementer-Pol. (3)
Schedule & Budgets
Fanatic.
Nasser’s Triad*: The Internet
Is the New Job 1
Brian Kelley, 40, head of global sales and
service (GE appliances); first non-“car guy”
in the job
Karen Francis, 38, eBusiness czar (Olds
brand boss)
Marv Adams, 43, CIO (Bank One’s IT
infrastructure consolidator)
* All three are “direct reports”
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on
“Most Admired Global Corporations”
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
“It is a glory to
have broken such
infamous orders.”
John Adams, to Congress, on ignoring his charter
and negotiating successfully with the Brits for
Independence, against the will of the French
“If anyone can do it, John [Rebus],
I’ve always had
confidence in your sheer
pig-headedness and
inability to listen to your
senior officers.”
you can.
from Ian Rankin, The Falls
“In a long and honorable
career, a scientist in a
pharmaceutical house is
not likely – statistically – to
experience a success.”
Big Pharma Exec
TP:
Bullshit!
“Statistically speaking,” Churchill
shouldn’t have been able to fend off
Hitler. De Gaulle shouldn’t have been
able to revive the French. King &
Jefferson & Adams & Hamilton
shouldn’t have been able to
change/create America.*
* “Statistically speaking,” Pfizer or no Pfizer,
ain’t none of us getting’ out of this alive.
SOME OF YOU IN THIS ROOM
WILL BE ARCHITECTS OF A
SUCCESSFUL NEW DRUG. WHY:
SCIENTIFIC PROWESS, 4%;
PASSION & DRIVE & POLITICAL
SAVVY, 96%. (Hint: World’s best
“politicians”: Would-be Nobel
laureates.)
Sales2001
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.)
Politics
Rules!
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 in great technology companies
can affirmatively respond to the query in an HP banner
ad: HAVE YOU CHANGED CIVILIZATION TODAY?
25. Keep your bloody PowerPoint slides simple!
Brand Inside
Brand Talent: The
Great War for Talent
The Case
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are
up 3 points, economists
down 1/4, in
moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
“Workers with good ideas,
or the ability to generate
ideas, can write their own
ticket. We’re talking about
the democratization
of power.”
Nathan Myhrvhold
Dick Kovacevich (Wells Fargo) on Talent
“You don’t just write a memo saying people are
a competitive advantage. You back that up with
training, incentives and the interpersonal
relationships developed over time that add up
to your employees caring more about their
customers than the employees of your
competitors. I can’t overstate how
differentiating that is, as opposed to a silver
bullet about figuring out some way to segment
the market.”
Source: ABA Banking Journal
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, CEO, Enron
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
From “1, 2 or you’re out” [JW]
to …
“Best Talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
Sports
Franchise GM
Model 24/7:
33 Division Titles. 26
League Pennants. 14
World Series: Earl Weaver—0.
Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony
LaRussa—132 games, 6 seasons.
Tommy Lasorda—P, 26 games.
Sparky Anderson—1 season.
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!]
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank: BEST
PERSON
IN THE WORLD TO HEAD
EACH INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
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 (05.17.00)
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)
“We value engineers like
professional athletes. We
value great people at 10
times an average person
in their function.”
Jerry Yang, Yahoo
So-so plant manager, $1M
per year. Pay: $110,000 plus
$60,000. Top plant manager,
$3-4M per year. Pay:
$135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for
Talent, re Georgia-Pacific
What gets measured
gets done. What gets
paid for gets done
more. What gets paid
a lot for gets done
a lot more.
5. Youth
Grovel Before the Young!
“Why focus on these late teens and twentysomethings? Because they are the first
young who are both in a position to change
the world, and are actually doing so. … For
the first time in history, children are more
comfortable, knowledgeable and literate
than their parents about an innovation
central to society. … The Internet has
triggered the first industrial revolution in
history to be led by the young.”
The Economist [12/2000]
“Talented people are less likely
to wait their turn. We used to
view young people as trainees;
now they are authorities. Arguably
this is the first time the older generation
can – and must – leverage the younger
generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
“Inexperience Is Bliss”/The Economist
Gen e: They welcome change.
They think differently.
They are independent.
They are entrepreneurial.
They want opportunity more than
money or security.
They demand respect in a way young
people never could before.
Enron
COO: Louise Kitchen,
F, 29; created
EnronOnline as
“Skunkworks”
6. Diversity
Mess Rules!
“Where do good new ideas come
from? That’s simple! From
differences. Creativity comes
from unlikely juxtapositions.
The best way to maximize differences
is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
mix-and-match – these people are inheriting the
earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
Message(s) ABB, Shell
and [Damn Few] Others
ELITE Global Cadre
Genuinely Global BOARD
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
“On average, women and men
possess a number of different innate
skills. And current trends suggest
that many sectors of the twentyfirst-century economic community
are going to need the natural
talents of women.”
Helen Fisher, The First Sex: The Natural Talents of
Women and How They Are Changing the World
“American women possess leadership
abilities that are particularly effective in
today’s organizations, yet their abilities
remain undervalued and underutilized.
In the future, what will distinguish one
organization and one country from
another will be its use of human
resources. Today human resource
utilization is not only a matter of social
justice but a bottom-line issue.”
Judy Rosener, America’s Competitive Secret
Women and neweconomy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
“Guys want to put everybody
in their hierarchical place.
Like, should I have more
respect for you, or are you
somebody that’s south
of me?”
Paul Biondi, Mercer Consultants [from It’s Not
Business, It’s Personal, Ronna Lichtenberg]
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
Women’s Strengths: Link [rather than rank]
workers; favor interactive-collaborative
leadership style [empowerment > top-down
decision making]; sustain fruitful collaborations;
comfortable with sharing information; see
redistribution of power as victory, not surrender;
favor multi-dimensional feedback; value
interpersonal & technical skills, group &
individual contributions equally; readily accept
ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity
Source: Judy B. Rosener, America’s Competitive Secret
Men & women on ambiguous
problem [no answer]: MEN:
quickly arrive at “right answer”
WOMEN: longer time, multiple
options in “if, then” form
Source: Judy Rosener,
America’s Competitive Secret
Guys’ No. 1 Strength:
Lack of
thoughtfulness.
TRY SOMETHING.
ANYTHING. NOW.
“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
“Boys are trained in
a way that will make
them irrelevant.”
Phil Slater
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (May2000)
M-F GPAs: All: 2.92M vs. 3.07F;
Arts: 3.08M, 3.13F; Bus: 2.79M,
2.96F; Science/Math: 2.98M, 3.18F;
Eng/CompSci: 2.96M, 3.17F.
% Professional Degrees: F ’77:
19%; F ’94: 41% (45% Ph.D.s)
Read This!
“Winning the Talent War
for Women: Sometimes It
Takes a Revolution”
Douglas McCracken, HBR [11-12/2000]
“Deloitte was doing a great job of hiring highperforming women; in fact, women often earned
higher performance ratings than men in their first
years with the firm. Yet the percentage of women
decreased with step up the career ladder. … Most
women weren’t leaving to raise families; they
had weighed their options in Deloitte’s maledominated culture and found them wanting.
Many, dissatisfied with a culture they perceived as
endemic to professional service firms, switched
professions.”
Douglas McCracken, “Winning the Talent War for Women” [HBR]
“The process of assigning plum
accounts was largely unexamined. …
Male partners made assumptions:
‘I wouldn’t put her on that kind of
company because it’s a tough
manufacturing environment.’ ‘That
client is difficult to deal with.’ ‘Travel
puts too much pressure on women.’ ”
Douglas McCracken, “Winning the Talent War for
Women” [HBR]
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
The Magic
Number 3! [Partners,
S. Estrich:
Tenured Profs, Directors]
“Women are expected to be the
majority of students entering
law school this fall. … The
movement ultimately is expected
to propel more women into
leadership positions in politics
and business.”
Source: The New York Times, p.1, 03.26.2001;
10% of students in 1970, 49.4% in Fall 2000
“It’s time for U.S. organizations
to act. No other country in the
world has a comparable supply
of professional women waiting
to be called into action. This is
America’s competitive secret.”
Judy B. Rosener, America’s Competitive Secret
Sally Helgesen, Female Advantage
Judy Rosener, America’s
Competitive Secret
Deborah Tannen, You Just Don’t
Understand
John Gray, Men Are from Mars,
Women Are from Venus
Faith Popcorn, EVEolution
8. Weird
The Cracked Ones
Let in the Light!
The Cracked Ones Let in the Light
“Our business needs a massive
transfusion of talent, and talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
Axiom: Never hire
anyone without an
aberration in their
background!
enough
weird people in
“Are there
the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Would Craig
Venter
(Luciano Benetton)
come to work for
us?
“I would like to think we could
attract students with green
hair. We will take pink and
blue and orange hair, too.”
Shirley Tilghman, Princeton
Never trust
a “boss” with
no toys in
his/her office!
Axiom:
“Andrew Higgins, who built landing
craft in WWII, refused to hire graduates of
engineering schools. He believed that they
only teach you what you can’t do in
engineering school. He started off with 20
employees, and by the middle of the war
had 30,000 working for him. He turned out
20,000 landing craft. D.D. Eisenhower told
me, ‘Andrew Higgins won the war for us.
He did it without engineers.’ ”
Stephen Ambrose/Fast Company
The NAESP …
Attributes of Those Who “Made” the 10th
Grade History Book
– Committed!
– Determined to make a difference!
– Focused!
– Passionate!
– Irrational about their life’s project!
– Ahead of their time / Paradigm busters!
– Impatient! / Action Obsessed
Attributes of Those Who “Made” the 10th Grade
History Book
–Made lots of people mad!
–Flouted the chain of command!
–Creative / Quirky / Peculiar! / Rebels! /
Irreverent!
–Masters of improv / Thrive on chaos
/ Exploit chaos!
Attributes of Those Who “Made” the 10th Grade
History Book
–Forgiveness > Permission
–Bone honest!
–Flawed as the dickens!
– “In touch” with their followers’
aspirations
–Damn good at what they do!
“Well-behaved
women rarely
make history.”
Anita Borg,
Institute for Women and Technology
9. Opportunity
Make It an Adventure!
“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
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
Why Don’t Most Biz Mgrs.
Think This Way?
“Coaching is winning
players over.” *
Phil Jackson
*Not: “planning,” “implementing,” “clear
communication,” “getting the org chart right.”
Insights from 80,000 managers:
“People don’t change much.
“Don’t waste time trying to put in
what was left out.
“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Employee retention &
satisfaction:
Overwhelmingly, based on
their immediate manager!
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Managing: “The people
thing” [Inspire one]
[Cool!]
Leading: “The vision
thing” [Inspire all] [Cool!]
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
It’s your
fault!*
*Sam Culbert
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!
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
“THE CHRYSLER THAT DAIMLER BOUGHT
IS DEAD. The recent resignation of Thomas
Gale, the great Chrysler designer, brings that
home as nothing else does. This was the mistake
Juergen Schrempp made when he bought
Chrysler: He didn’t realize it was the people who
counted, not the factories, which were old, or the
sales and profits, which can come and go. The
people and the leadership are the heart and spirit
of the Detroit automaker and when they go, all
that is left are old factories and problems.”
Forbes [10.30.00]
Message: Talent rules!
Women leaders rule!
Talent = Brand.
Become “Talent
Obsessed”! Become
“EVP Obsessed”!
Would Craig
Venter
come to work for
us?
(Luciano Benetton)
HR Folks: YOU – not
“marketing” - “OWN”
THE “BRAND
PROMISE”!
(If you wish.)
Titles!
Manager
Human Capital
Assets or Manager
Manager HRIS to
Employee Marketing*
*IHRIM.link (2-3.2001)
Obsession
Greatness
Performance
Pay
Youth
Diversity
Women
Weird
Opportunity
Leading Genius
First Steps
Make a list of the traits you
really want to unearth. (TP &
“sense of humor;” GR & jaywalking.)
Promote for TDS/Talent
Development Skills.
Work up an EVP.
Truth
1000X
more important in times of
Madness!
Message 2001: I’m …
Comfortable with … CHAOS.
UN-Comfortable with …
B.S.
Brand Inside
Brand Talent+: The
Education Fiasco
Losing the
War to
Bismarck
“My wife and I went to a [kindergarten] parentteacher conference and were informed that our
budding refrigerator artist, Christopher, would be
receiving a grade of Unsatisfactory in art. We
were shocked. How could any child—let alone
our child—receive a poor grade in art at such a
young age? His teacher informed us that he
had refused to color within the lines, which
was a state requirement for demonstrating
‘grade-level motor skills.’ ”
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En mass the children leapt from their
seats, arms waving. Every child was an artist. SECOND GRADE:
About half the kids raised their hands, shoulder high, no higher.
The hands were still. THIRD GRADE: At best, 10 kids out of 30
would raise a hand, tentatively, self-consciously. By the time I
reached SIXTH GRADE, no more than one or two kids raised their
hands, and then ever so slightly, betraying a fear of being
Every
school I visited was participating in the
suppression of creative genius.”
identified by the group as a ‘closet artist.’ The point is:
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
“The main crisis
in school today
is irrelevance.”
Daniel Pink, Free Agent Nation
“Schools were designed by Horace Mann, E.L.
Thorndike, and others to be instruments of the scientific
management of a mass population. Schools are
intended to produce, through the
application of formulas, formulaic human
beings whose behavior can be predicted
and controlled. To a very great extent, schools
succeed in doing this. But in a society that is
increasingly fragmented, in which the only genuinely
successful people are independent, self-reliant, and
individualistic, the products of school and ‘schooling’
are irrelevant.”
A Different Kind of Teacher, John Taylor Gatto
“Our military structure today is essentially
one developed and designed by Napoleon.
We should, firstly, functionally integrate the
Army, Navy, Air Force and Marines. You
could eliminate half of these command
structures’ vertical steps. Of course, you’d
get rid of lots of generals and admirals. The
military doesn’t like that.”
Admiral William Owens, former Vice Chairman, Joint
Chiefs of Staff
“Our education system is a
second-rate, factory-style
organization, pumping out
obsolete information in obsolete
ways. [Schools] are simply not
connected to the future of the kids
they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
In Need of that
“White Collar
Revolution”
J. D. Rockefeller’s General Education Board
“In our dreams people
yield themselves with perfect
docility to our molding hands. …
(1906):
The task is simple. We will organize
children and teach them in a perfect way
the things their fathers and mothers are
doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
Milwaukee: $6,951
per
student. Central
administration: $3,481.
Instruction: $1,647.
A Different Kind of Teacher, John Taylor Gatto
(Research reported in Education Update, Fall 1990)
“The most obvious barrier between
our children and the kind of education
that can free their enormous potential
seems to be the educational system
itself: a vast, suffocating web of
people, practices and presumptions,
kindly in intent, ponderous in
response.”
George Leonard, Education and Ecstasy
An Unnatural
Way to
“Learn”
“The time bomb in every
classroom is that
students learn
exactly what they
are taught.”
Frank Smith, Insult to Intelligence
“What [standardized tests]
actually measure is the
tractability of the student,
and this they do quite
accurately. Is it of value to know
who is docile and who is not? You tell
me.”
John Taylor Gatto, A Different Kind of Teacher
“Schoolteachers aren’t allowed
to do what they think best for
each student. Harnessed to a
collectivized regimen, they soon give
up thinking seriously about students
as one-of-a-kind individuals,
regardless of what they may wish were
true.”
John Taylor Gatto, A Different Kind of Teacher
“The best evidence that our schools are set up to ‘school’
and not be useful educationally lies in the look of the
Rooms with no
clocks, no telephones, no fax
machines, no stamps, no envelopes,
no maps, no directories, no private
space in which to think, no
conference tables on which to confer.
rooms where we confine kids.
Rooms in which there isn’t any real way to contact the
outside world where life is going on.”
A Different Kind of Teacher, John Taylor Gatto
“Every time I pass a
jailhouse or school, I
feel sorry for the
people inside.”
Jimmy Breslin, 07.11.2001, on “summer school”
in NYC [“If they haven’t learned in the winter,
what are they going to remember from days
when they should be swimming?”]
“It is absurd and anti-life to be compelled
to sit in confinement with people of exactly
the same age and social class. This cuts
children off from the immense diversity of life and the
synergy of variety. … It is absurd and anti-life to move
from cell to cell at the sound of a gong every day of
your natural youth in an institution that allows you no
privacy. … In centuries past, children and adolescents
would spend their time in real work, real charity, real
adventures, and in the search for mentors who might
teach them what they really wanted to learn.”
A Different Kind of Teacher, John Taylor Gatto
“I discovered the brutally simple
motivation behind the
development and imposition of all
systematic instructional programs
and tests—a lack of trust that
teachers can teach and that
children can learn.”
Frank Smith, Insult to Intelligence
“It is an inescapable reality that
students learn at different rates in
different ways. That creates the
need for a schedule of sensitivity
that only teachers close to the
particular student can devise—not
some theory-driven, central-office,
computer-managed schedule.”
Ted Sizer
Schools’ “Kafka-like rituals”: “enforce sensory
deprivation on classes of children held in
featureless rooms … sort children into rigid
categories by the use of fantastic measures such as
age-grading, or standardized test scores … train
children to drop whatever they are occupied with
and to move as a body from room to room at the
sound of a bell, buzzer, horn, or klaxon … keep
children under constant surveillance, depriving
them of private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist
that every moment of time be filled with lowlevel abstractions … forbid children their own
discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
“[One factor contributing to widespread
teacher dissatisfaction] is the extremely
shallow nature of intellectual enterprise in
schools. Ideas are broken into fragments
called subjects, subjects into units,
units into sequences, sequences into
lessons, lessons into homework, and all
these prefabricated pieces make a
classroom teacherproof.”
John Taylor Gatto, A Different Kind of Teacher
Ted Sizer, on the “logic” of high
schools: “If we spend more
than a day on the Bill of
Rights, we can’t get to
Grover Cleveland before
Valentine’s Day.”
“We interrupt classes with public
address system announcements,
utterly forgetting that Hamlet’s
soliloquy may lose something from
the interjection of information
about where the cheerleaders
should meet after school.”
Ted Sizer
“We parade adolescents before
snippets of time. Any one teacher will
usually see more than 10 students and
often more than 160 in a day. Such a
system denies teachers the
chance to know many students
well, to learn how a particular
student’s mind works.”
Ted Sizer
“The myth is that learning
can be guaranteed if instruction
is delivered systematically,
one small piece at a time, with
frequent tests to ensure
that students and teachers
stay on task.”
Frank Smith, Insult to Intelligence
“A substantial amount of testimony
exists from highly regarded scientists
like [Nobel laureate] Richard Feynman,
Albert Einstein, and many others, that
scientific discovery is negatively
related to the procedures of
school science classes.”
John Taylor Gatto, A Different Kind of Teacher
Messenger: “The mind is a machine, but a virtual
machine. A system of systems.”
Helen: “Perhaps it isn’t a system at all.”
Messenger: “”Oh, but it is. … If you’re a scientist, you
have to start with that assumption.”
Helen: “I suspect that’s why I dropped science at
school as soon as they let me.”
Messenger: “No,
you dropped it, I would
guess, because it was doled out to
you in spoonfuls of distilled
boredom.”
David Lodge, Thinks …
But Are They Being Taught to
Think?
“Students who receive
honor grades in college-level
physics are frequently unable to
solve basic problems encountered
in a form slightly different from the
one in which they have been
formally instructed and tested.”
From MIT & JHU:
Howard Gardner, Unschooled Minds
Higgins
Knew!
“Andrew Higgins, who built landing craft in WWII,
He
believed that they only teach you what
you can’t do in engineering school. He
refused to hire graduates of engineering schools.
started off with 20 employees, and by the middle of the
war had 30,000 working for him. He turned out 20,000
landing craft. D.D. Eisenhower told me, ‘Andrew
Higgins won the war for us. He did it without
engineers.’ ”
Stephen Ambrose/Fast Company
Doing Stuff
that Matters!
“Education, at best, is ecstatic. At
its best, its most unfettered, the moment
of learning is a moment of delight. This
essential and obvious truth is
demonstrated for us every day by the
baby and the preschool child. … When joy
is absent, the effectiveness of the
learning process falls and falls until the
human being is operating hesitantly,
grudgingly, fearfully.”
George Leonard, Education and Ecstasy [1968]
“Children learn what
makes
sense to them; they learn through
the sense of things they
want to understand.”
Frank Smith, Insult to Intelligence
Per George Miller:
Children as
“informavores,” who
“eat up new
Knowledge.”
Frank Smith, Insult to Intelligence
“During the first years of
life, youngsters all over
the world master a
breathtaking array of
competences with little
formal tutelage.”
Howard Gardner, The Unschooled Mind
“’Schooling’ takes place in an environment
controlled by others. … ‘Education’
describes efforts largely selfinitiated for the purpose of taking
charge of your life wisely and living
in a world you understand. The
educated state is a complex tapestry woven
of broad experience, grueling
commitments, and substantial risk taking.”
A Different Kind of Teacher, John Taylor Gatto
“We underrate our brains and our intelligence.
Formal education has become such a
complicated, self-conscious, and over-regulated
activity that learning is widely regarded as
something difficult that the brain would rather
no do. … Such a belief is probably well-founded
if the teachers are referring to their efforts to
keep children moving through the instructional
sequences that are prescribed as ‘learning
activities’ in school. … We are all capable of
huge and unsuspected learning
accomplishments without effort.”
Frank Smith, Insult to Intelligence
“Each of us has a design
problem to solve: to create
from the raw material around us
the curriculum for a good life. It
isn’t easy, and it isn’t the same
for any two people.”
John Taylor Gatto, A Different Kind of Teacher
Mary Foley, homeschooling mother of four, Cape
Cod: “If we are not free to educate our children, liberty
is an illusion. I do not have a curriculum. The state does
not have the power to standardize children. My method
has been successful enough to produce a daughter who
is a member of the National Honor Society and twin sons
who tested in the top one percent on a national
placement test for two consecutive years. The
priorities of our curriculum are daydreaming,
natural and social sciences, self-discipline,
respect of self and others, and making mistakes.”
John Taylor Gatto, A Different Kind of Teacher
“I want to give you a yardstick, a gold standard, by
which to measure good schooling. The Shelter Institute
in Bath, Maine, will teach you how to build a three
thousand square-foot, multi-level Cape Cod home in
three weeks’ time, whatever your age. If you stay
another week, it will show you how to make your own
posts and beams; you’ll actually cut them out and set
them up. You’ll learn wiring, plumbing, insulation, the
works. Twenty thousand people have learned to build a
house there for about the cost of one month’s tuition in
public school.”
John Taylor Gatto, A Different Kind of Teacher
“The most extraordinary result was the
unanimity and conviction with which boys and
girls—aged 8 to 11—called for a broader
curriculum, with much more science, history,
geography, history, art, craft, woodwork,
cooking, electronics, cooking and technology.
They wanted, above all, more work which
allowed them to think for themselves,
to experiment, to engage in
first-hand observation.”
Frank Smith, Insult to Intelligence
“Learning is
never divorced
from feelings.”
Frank Smith, Insult to Intelligence
The Learner’s Manifesto
The brain is always learning.
Learning does not require coercion.
Learning must be meaningful.
Learning is incidental.
Learning is collaborative.
The consequences of worthwhile learning
are obvious.
Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
U.C. Ed Dean Walter Karp: “From the first grade
to the twelfth, from one coast to the other,
instruction in America’s classrooms is almost
Answers are
‘right’ and answers are
‘wrong,’ but mostly
answers are short.”
entirely dogmatic.
Frank Smith, Insult to Intelligence
Richard Paul, Director, Center for
Critical Thinking: “We need to
shift the focus of learning from
simply teaching students to have
the ‘right answer,’ to teaching
them the process by which
educated people pursue
right answers.”
Frank Smith, Insult to Intelligence
James Coleman, 1974: “Develop
in youth the capabilities for
engaging in intense
concentrated involvement in
an activity.”
Source: Mihaly Csikszentmihalyi & Barbara Schneider,
Becoming Adult
“While not every child will develop interests as
fascinating as Darwin’s, without the enthusiasm that
leads to intense, concentrated activity, a child will
likely lack the perseverance needed to face the future
successfully. We may not know what jobs will be
available to young people ten years from now. … But
to the extent that teenagers have had experiences
that demand discipline, require the skillful use
of mind and body, and give them a sense of
responsibility and involvement with useful
goals, we might expect the youth of today to be ready
to face the challenges of tomorrow.”
Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult
“Growing up to be a happy adult gets more and
more difficult as occupational roles become
more vague and ephemeral. Young people can
no longer count on a predictable future and
cannot expect that a set of skills learned in
school will be sufficient to ensure a comfortable
career. For this reason, we need to take a
long look at the conditions that prepare
youth for a changing, uncertain future.”
Mihaly Csikszentmihalyi & Barbara Schneider, Becoming Adult
Gatto’s Lab School
ONE. Independent Study. A day out of
the school building, chasing ONE BIG
IDEA. TWO. Apprenticeship. THREE.
Community Service, a day a week.
FOUR. Team up with parents, yours or
someone else’s, for Family Teamwork
Curriculum. FIVE. Class work.
Jamaal Watson, 13, from Children’s Express Quarterly; from John
Taylor Gatto, A Different Kind of Teacher
Gardner’s MI7: Linguistic,
Logical-mathematical,
Spatial, Musical,
Bodily-kinesthetic,
Interpersonal,
Intrapersonal.
“Actual content may not be the issue at all, since
we are really trying to impart the idea that one
can deal with new areas of knowledge if one
knows how to learn, how to find out about what
is known, and how to abandon old ideas when
they are worn out. This means teaching ways
of developing good questions rather than
memorizing known answers , an idea that
traditional schools simply don’t cotton to at
all, and that traditional testing methods are
unprepared to handle.”
Roger Schank, The Connoisseur’s Guide to the Mind
“Apprenticeships
& Projects” – Howard
Gardner
EBF*
to
EBI**
* Education By Fiat
** Education By Interest
“When they tell the
story of their project,
they are irresistible to
admissions officers!”
Dennis Littky
“If we are to configure an education for the
world of tomorrow, we need to take the
lessons of the museum and the
relationship of the apprenticeship
extremely seriously. … to think of the
ways in which the strengths of a
museum atmosphere, of
apprenticeship learning, and of
engaging in projects can pervade all
educational environments.”
Howard Gardner, Unschooled Minds
“Questions, questions,
questions. They disturb. They
provoke. They exhilarate. They intimidate.
They make you feel a little bit like you’ve
at least temporarily lost your marbles. So
much so that at times I’m positive that the
ground is shaking and shifting under our
feet. Welcome to Socrates Café.
Christopher Phillips, Socrates Café
Most important 3 letters:
Tom’s Edu3M
Manifesto*
*Manifesto for Education in the 3rd Millennium
Education3M
Learning is a normal state.
Children are learnavores.
Prodigious feats of learning are common as dirt.
[Watch an H.S. QB studying game film.]
We learn at different rates.
We learn in different ways.
Boys and girls learn [very] differently.
In a class of 25, there are 25 different trajectories.
Learning in 40-minutes blocks is bullshit.
Learning for tests is utterly insane.
There are numerous rigorous evaluation schemes,
of which testing is but one—and abnormal, by “real
world” standards.
Education3M
We learn most/fastest/most completely when we
are passionate about what we are learning and it
matters to us. [Salience rules!]
Think EBI/LBI: Education by Interest/Learning by
Internship.
Classrooms are abnormal places.
We need changes of pace. [Japanese recesses between
each class.]
International test scores are not correlated with
hours-per-year in class.
Big classes are slightly problematic. Big schools
suck. Period.
Education3M
“All this”—the right stuff—fits the NWW/New World
of Work hand-in-glove. [NWW = Age of Creativity.]
U.S. schools circa 2001 are a vestige of the
Prussian-Fordist model, more interested in shaping
behavior than stoking the fires of lifelong learning.
Cutting art-music budgets is truly dumb.
Learning is a matter of Intensity of Engagement, not
elapsed time. [Aargh: 11 minutes on the Battle of Gettysburg.]
Teachers need enough space-time-flexibility to get
to know kids as individuals.
Scientific discovery processes and the teaching of
science are utterly at odds. [Exploration vs. spoon-feeding.]
Education3M
Our toughest “learning achievement”—
mastering our native language—does not
require schools, or even competent parents. [It
does require a desperate need-to-know.]
Great teachers are great learners, not impartersof-knowledge.
Great teachers ask great questions—that launch
kids on lifelong quests.
The world is not about “right” & “wrong”
answers; it is about the pursuit of increasingly
sophisticated questions—just ask a ski
instructor or neurosurgeon.
Education3M
Most schools spend most of their time setting
up contexts in which kids learn not to like
particular subjects. [Evidence shows that such antilearning sticks!]
Vigorous exploration is normal … until you are
incarcerated in a school.
“Bite size” education-learning is neither
education nor learning.
Learning takes place rapidly on the cheerleading
squad, the football team, the school newspaper,
the drama club, at the after-class job--just not in
the hyper-structured classroom.
Education3M
The “school reform” “movement” is a giant step …
backwards … embracing the Prussian-Fordist
paradigm with renewed vigor—at exactly the
wrong time.
There are large numbers of superb schools, superb
principals, superb teachers; sadly, they not only fail
to infect the [largely timid] rest, but are ordinarily
supplanted by wusses & wimps.
Alas, the teaching profession does not ordinarily
attract “cool dudes & dudettes.”
Schools of “education” should by and large have
their charters revoked.
Education3M
“Education” must “develop in youth the
capabilities for engaging in intense concentrated
involvement in an activity.” [James Coleman, 1974.] [Hint:
It doesn’t.] [Hint: Understatement.]
Stability is dead; “education” must therefore
“educate” for an unknowable, ambiguous,
changing future; thence, learning to learn &
change is far more important than mastery of a
static body of “facts.” [Was the “War of the
Roses” really over roses? (1) I don’t remember. (2)
Not remembering has not been a handicap.]
Education3M
I never took a speech course.
Hemingway couldn’t spell.
Etc.
Etc.
Etc.
We get it
all wrong. We
know how to
do “it” right!
The Horror:
My Education: People. (Damn few.)
Mrs. Landers. Mrs. Gaver. Miss
Churchill. Mr.
Chapin. Mr.
Hooper. Prof. Liang. Prof. White.
Capt. Anderson. Gene.
Allen. (Warren.) (Susan.)
They
made me fall in love.
They helped me
figure out who I was.
My “educators’ ” secrets:
Lucky me: Mom,
Lucy, Mabel,
Shirley, Tom, Paul, Roger,
Mr. Chapin, Richard, Ta, The
Dutchman, The Economist,
Gene, Karl, Allen, Herb, Ian,
Warren, Herb, Dennis, Mike,
Susan. (They are my life!)
Bringing Out
the Best
Grameen Bank/Bangladesh
“It’s not people who aren’t creditworthy. It’s banks that aren’t
people-worthy.”
$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to nonpoverty threshold
Muhammad Yunus, Banker to the Poor
“The Grameen loan is
not simply cash. It
becomes a kind of ticket
to self-discovery and
self-exploration.”
Muhammad Yunus
Why Don’t Most Biz Mgrs.
Think This Way?
“Coaching is winning
players over.” *
Phil Jackson
*Not: “planning,” “implementing,” “clear
communication,” “getting the org chart right.”
Leaders-Teachers Do Not “Transform People”!
Instead they (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?) express their innate
curiosity and (4) engage in a vigorous discovery
voyage (alone and in small teams, assisted by an extensive
self-constructed network) to (5) go-create places they
(and their teachers-leaders) had never dreamed existed/
they could go.
Insights from 80,000 managers:
“People don’t change much.
“Don’t waste time trying to put in
what was left out.
“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently
“It is impossible to claim that all good teachers
use similar techniques: some lecture nonstop
and others speak very little; some stay close to
their material and others loose the imagination;
some teach with the carrot and others with the
stick. But in every instance, good teachers
share one trait: a strong sense of personal
identity infuses their work. ‘Dr. A is really
there when he teaches.’ ‘Mr. B has such
enthusiasm for his subject.’ You can tell
that this is really Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
“One student said she could not
describe her good teachers because
they differed so greatly, one from
another. But she could describe her
bad teachers because they were all
the same: ‘Their words float
somewhere in front of their faces, like
the balloon speech in cartoons.’ ”
Parker Palmer, The Courage to Teach
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Reprise: Brand Inside
The White Collar Revolution & The Web
[DYB.com!]
PSF as Building Block
[Work Worth Paying For/Source of Market Cap]
Work Worth Paying For = WOW Projects!
Brand You
[Everybody!]
The Great War for Talent!
Boss-free Implementation of STM! [F2F]
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Edge Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
“Enormous sums of money are invested to
reduce cycle time, improve quality,
reengineer … Much of this money is simply
wasted. The waste is due to companies’
inability to develop wide-angle vision and
tap into the … power of the edge.”
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
“Corporate consciousness is
predictably centered around the
mainstream. The best customers,
biggest competitors, and model
employees are almost invariably the
focus of attention.”
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
“Why smart companies do
dumb things: The standard a
successful company
requires for a new winning
strategy is far higher than
the standard anyone else
would ask for.”
Seth Godin, Zooming
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
“Too many companies rely on
benchmarking against industry
leaders. The problem is that those
companies are simply catching
up to what’s already been done,
while the leaders are moving on to
some new advantage.”
David Crane, on Michael Porter’s Canadian
competitiveness study, which discovered an
Innovation Deficit (05.05)
“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
Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners
[Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by” [Lessons from the Bees, Sir Richard, Gary H.]
Pioneer Assignments/Pioneer Projects/Pioneer Partners
[F2F: Freak-to-Freak/ 4F: Find a Fellow Freak Faraway]
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/
Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F. [O.O.D.A. Loops/Prototyping Mania]
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/PassionatePiracy
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
“The future has
already happened. It’s
just not evenly
distributed.”
Adrian Slywotzky
“Future-defining
customers may account
for only 2% to 3% of your
total, but they represent
a crucial window on the
future.”
Adrian Slywotzky, Mercer Consultants
“I made a note. I’m going after
[PIONEER CO.], not the
two ‘establishment firms’ who
were formerly at the top of my
2001 target list. We need a jolt.
Things are going too well.”
Sales Exec, high-tech superstar
“Generally, disruptive technologies
underperform established products
in mainstream markets. But they
have other features that a few
fringe (and generally new)
customers value.”
Clayton Christensen, The Innovator’s Dilemma
Elliott Masie, on desirable
eLearning vendors: “I want a
‘sandbox partner,’ someone
who will openly say, ‘This is
not the last word; we
don’t know exactly where
we’re going.’ ”
“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
The “Flypaper Strategy”:
Trolling for the Weird Ones!
Event Marketing: Idea Faires, Newsletters, etc.
Grants & Sabbaticals/
Customer-Vendor Teams
Hall of Freaky Fame
MBWA: “I.D. the freaks, please.”
Use colorful language in all communications
Deep Dip
“But don’t we
need some
grout between
the tiles?”
Button-down Org
•
•
•
•
•
•
•
H.S.D.E.
Acquire for market share
Suck up to biggest customers
Pursue “strategic vendors”
Bigger is better
Accept assignments as given
Hire 4.0s from “top schools”
Promote when they’ve “paid
their dues”
• Appoint a “prestigious” board
•
•
•
•
•
•
•
• Hang out with my pals
• R.A.F.
• Be “professional” at all
times/Honor thine elders
•
•
•
•
.
Acquire for innovation
Partner with cool customers
Seek out pioneering vendors
Break it up … to refresh
Reframe all tasks to innovate
Hire “intriguing,” wherever
Promote tomorrow if the work
product is weird and WOW
Appoint an interesting,
headstrong board
Take a freak to lunch today
F.F.F.
Stay loose, stay cool/The hell
with thine elders
New Organizational World: Shifts of Emphasis
Staffing
Organization
Workforce
Power Source
Loyalty
Career Asset
Fat
Vertical
Homogeneity
Status/Command Rights
Company
Organizational Capital
Thin
Horizontal
Diversity
Expertise/Relationships
Project
Reputational Capital
Source: “The Workforce of the Future,” IHRIM Journal (12.2000)
Enron’s secret:
the
Memoryless
Enterprise
The Cortez Strategy!
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
[Inundate yourself with weird.]
?????
“Come up with three
‘Crazy Ideas,’ one
of which might
work.”
Fr Timothy Radcliffe,
Master of the Dominicans,
to his friars
Multiple,
competing,
independent
discovery &
business models!
Must Have2001:
?????: Get better
organized to do good
work
vs.
Get better disorganized
to do great work
N.W.O.:
•
•
•
•
•
•
•
Was
Pine-paneled Office
•
Address: 1 Big Man Plaza •
Secretary
•
Suit
•
Formal
•
Rank conscious
•
Pretense (“Failures are •
for fools.”)
•
• I love “Yes men”
•
• Self-contained
Is
Is
Seat 9B, UA233
Address: Anne@Corp.com
Typing: 60 WPM
Casual M-F
Approachable
We are a HOT Team
Screwing up is as normal
as breathing
I love Misfits!
I love partners
Tomorrow’s Organizations:
Itinerant Potential Machines
TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal … if you’re stretching.
Want to ‘make their bones” in “the revolution.”
Love the new technologies. Well rewarded.
Don’t plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with
“world’s best” as needed (it’s often needed). “We
aim to change the world, and we need gifted
colleagues—who well may not be on our
payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I
don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY
DIFFERENT—but don’t expect the co. to be
around forever. Will scrap pet projects, and
change course 180 degrees—and take a big
write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YETCOME. GREAT REGRETS AT TIME & $$$
WASTED ON “ME TOO” PRODUCTS AND
PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
“Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A
PROFIT ON THIS GORGEOUS IDEA?” Appreciate
“market creation” as much as or more than
“market share growth.” ARE INSANELY AWARE
THAT MARKET LEADERS ARE ALWAYS IN
PRECARIOUS POSITIONS, AND THAT MARKET
SHARE WILL NOT PROTECT US, IN TODAY’S
VOLATILE WORLD, FROM THE NEXT KILLER
IDEA AND KILLER ENTREPRENEUR. (Gates.
Ellison. Venter. McNealy. Walton. Skilling. Case.
Etc.)
ALLIANCE MANIACS. Don’t assume that “the
best resides within.” WORK WITH A SHIFTING
ARRAY OF STATE-OF-THE-ART PARTNERS
FROM ONE END OF THE “SUPPLY CHAIN” TO
THE OTHER. Including vendors and
consultants and … especially … PIONEERING
CUSTOMERS—who will “pull us into the
future.”
TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed.
Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t
know what’s coming next. But are ready to jump
at opportunities, especially those that
challenge-overturn our own “way of doing
things.”
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
“Analysts said we don’t care about revenue,
just give us the bottom line. They preferred
cost cutting, as long as they could see 2 or
3 years of EPS growth. I preached revenue
and the analysts’ eyes would glaze over.
Now revenue is ‘in’ because so many got
caught, and earnings went to hell. They
said, ‘Oh my gosh, you need revenues
to grow earnings over time.’
Well, Duh!”
Dick Kovacevich, Wells Fargo (in ABA Banking Journal)
Forces @ Work II
The Sameness Trap
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
“The world is so
competitive today it’s not
going to let everybody do
the same thing.”
Dick Kovacevich, Wells Fargo
(ABA Banking Journal)
“Our basic business
belief is that we don’t
want a parity product.”
Stephen Sanger, CEO, General Mills
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
“A boom in high-tech fakes is
shifting into overdrive. These
aren’t the old, tacky knockoffs that
can be spotted a mile away, but a
new breed of look-alikes born of
high-tech manufacturing
techniques and savvy packaging.”
WSJ 02.16.01
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
10X/10X
Message: “Similar” kills!
Stomp out the
Sameness Epidemic!
Brand Outside
Strategy 1A:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
Cisco!
90% of $20B (=$50M/day)
Annual savings in service
and support from customer
self-management: $550M
Oracle: Service Call Center
$300.00 per transaction
to $1.50
Savings: $550,000,000
Source: Ralph Seferian, Oracle [part of O’s
$1B saving – on a rev. base of $9B;
$1B additional this year]
Enron eWorld: “Price a structured
trade,” per John Arnold, 26: Early
1999: 30 times a day. Late 2000: 30
times per … minute.
Long-term gas contract. 1989: 9
months, 400+ deals. Late 90s:
2 weeks, 2 per week. Late 2000:
5 such deals per day
Source: www.ecompany.com (1/2001)
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(20,000 per day)
Parts Inventory: 2
hours,
100 square feet.
(Overall, 5 days vs. 50 to 90 days; target is
2.5 days)
GM/Ford/DaimlerChrysler/Renault/
Nissan/Oracle/CommerceOne
Covisint (02.2000)
$240B (+$500B)
90,000 Suppliers
$2-3,000/Car
42 to 12-18 Months
Source: Business2.0 (02.2001)
“This is the first meter of a
10-kilometer race.
Eventually, all markets will
come to resemble today’s
foreign exchange market.”
Hamid Biglari, Head of Corporate Strategy,
Citigroup, in “GIGATRENDS”, Wired 04.01
X1,000,000
TowTruckNet.com
COMMUNITY
SERVICES!
Secret Cisco: Community!
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Webcor. Construction. Web site
for each project. Instant info on
status to employees, subs,
architects. Mgt costs cut by
2/3rds. Huge time shrinkage.
Source: Business Week (09.00)
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
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”
“Age of
Customer
Control”
Is:
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“The concept of being always on, always
connected, is very powerful. … Companies are
going to need to reach consumers across all
the different transmission media and devices –
across wireless, on cell phones,
into cars, onto airplanes, into cabs,
into the home and TV set. … It’s
not just the message – now you’ve
got a connection, what do you do
with that?”
Marc Andreessen [Mosaic, Netscape, Loudcloud]
“HR Employee
Self-Service/
ESS”
John Pask/IHRIM
*Business to Employee (IHRIM.link)
“Systems supporting one-toone employee relationships
will add competitive
advantage.” “Employees
expect far more access and
control over their own
information.”
Source: IHRIM.link (2-3.2001)
“Managing Benefits:
Let Workers Do It”
Source: Headline, Money & Medicine, New
York Times (12.06.00); cited are specialist
companies such as eBenX and Vivius
of Minneapolis
“Human resource management (HRM) systems
will begin to look more like customer
relationship management (CRM) systems—
where we must know as much about our people
(existing and future) as we do about our
customers.”
“Applications in the future will be much more
personalizable. Every user will have a
customized way of working with their
information. There will be more of a self-learning
and intuitive model than we have today.”
Source: IHRIM Journal (12.2000)
Gen X
thinks you’re
cretins!
Message HR:
Source: IHRIM.link (2-3.2001)
Radical
Simplicity!
“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
“Revenues on the Web
are determined
almost completely by
usability.”
Jakob Nielsen (The Economist 04.28.01)
SWA
Simple!!!!!!!!!!!! (customers call
because the process is so easy they can’t
believe they’re done)
30% of revenues directly from
site (vs. 6% for others)
Source: Business Week (09.00)
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”
One Person’s Opinion [11.2000]
TP to reporter: “Service is
MUCH better! Would you go
back to bank tellers and phone
operators? Value that I place
on a smile: 3 on a scale of 10.
Value I place on fast “digital”
response: 11 on a scale of 10!!”
RADICAL
STRATEGIES
REQUIRED
“One cannot be tentative
about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t
ready’ cannot be allowed. Delay and
you risk being cut out of your own
market, perhaps not by traditional
competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
GE & the Web
Purchasing: 2000: $6B;
2001: $15B
Sales: 1999: $1B;
2000: $7B; 2001: $20B+
Source: Business 2.0 (05.01)
Ge Miscellany …
Polymerland: 75% to Web
Appliances: $5 to 20 cents,
Web vs. call Service Rep; 20
million calls per year
Source: Fast Company
“We’ve put the word out
to all of our suppliers: by
the end of the year [2000]
we’ll only do purchasing
over the Internet.”
John Paterson, C.P.O., IBM
[$50B from 18,000 suppliers]
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
The eProcess Edge
Embed processes in software
(My.Yahoo, MySchwab)
Outsource processes electronically
(Gateway and eCredit)
In-source new capabilities electronically
(Fidelity’s services from outside)
Handle exceptions exceptionally (Schwab)
Source: The eProcess Edge, Peter Keen &
Mark McDonald
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.
“E-business is the
final nail in the coffin
for bureaucracy at
GE.”
Jack Welch/
GE Annual Report 2000
“Hyperlinks subvert
hierarchy!”
The Cluetrain Manifesto
[ 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]
“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
“Top management has to spend
time on the details. They aren’t used
to being detail oriented. They have to
get back to figuring out, ‘How is it we
will take an order on the Internet?’
‘How will we communicate with our
suppliers, and force them to use the
Internet?’ ‘What, exactly, do the
business processes look like?’ ”
Ray Lane, Kleiner Perkins
Magic!
[Inter]networked Markets
meet …
[Intra]networked Workers
Source: The Cluetrain Manifesto: The End of
Business as Usual
“Supply Chain” 2000:
“When Joe Employee at Company X launches his
browser, he’s taken to Company X’s personalized
home page. He can interact with the entire scope of
Company X’s world – customers, other employees,
distributors, suppliers, manufacturers, consultants.
The browser – that is, the portal – resembles a My
Yahoo for Company X and hooks into every network
associated with Company X. The real trick is that Joe
Employee, business partners and customers don’t
have to be in the office. They can log on from a cell
phone, Palm Pilot, pager or home office system.”
Red Herring (09.2000)
“Customer Service” is DEAD.
“One-to-One” is DEAD.
Welcome to: ????
[??? = We live together in seamlessresponsive harmony with all Members of
the Value Chain. We Create together. We
Fulfill together. We Learn together. We
Adjust together. All old categories –
which imply separation and linearity and
hierarchy and do-it-to-themism –
must die.]
A DREAMER’S
MEDIUM!
“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!
…
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
Message: Survivors will
move all their operations
to the Web. Now. Web =
Encompassing … or else.
Only idiots
pull in their [investment]
Message 2001:
horns during a
downturn.
“Believe in the
Internet … MORE
THAN EVER.”
1
Andy Grove, Cover quote, Wired (June 200
)
The Real “New Economy”
“Only a few times in history
have interaction costs
radically changed—one was
the railroads, then the telegraph
and telephone. We’re going
through another one right now.”
Jeff Skilling, Enron
The Real “New Economy”
“Imagine a chess game in which, after every half
dozen moves, the arrangement of the pieces on
the board stays the same but the capabilities of
the pieces randomly change. Knights now move
like bishops, bishops like rooks … Technology
does that. It rubs out boundaries that separate
industries. Suddenly new competitors with new
capabilities will come at you from new directions.
Lowly truckers in brown vans become geeky
logistics experts. …”
Business 2.0 (9-10.2001)
THIS IS A
BIG
DEAL!
Markets to networks. Hierarchies to networks.
Sellers and buyers to suppliers and users.
Ownership to access. (Age of Access.)
Marginalization of physical property. Weightless
economy. Protean generation. Outsourcing of
everything. Franchising of everything. (Business
format franchising.) (Leasing DNA.) Everything is a
service/platform for services delivery. (Give away
the goods, charge for the services. VALUE = THE
RELATIONSHIP. “Share of market” to “Share of
customer.”) Every business is show business.
Source: Jeremy Rifkin, The Age of Access
Karl Marx Meets Adam Smith: Lessons from the Bush
(1) Specialization-excellence. (Or death.)
(2) Luck is irrelevant. (In a drought, drought
specialists survive.) (3) Bigger is not
necessarily better. (All hail the termites +
bacteria!) (4) Efficiency matches
effectiveness: no wasted motion, no
bureaucratic B.S., very low “transaction
costs.” (I’net does this. C.f. Dell.) (5) Hyperinterdependence. (The power resides in the
network: Self-organization is the rule. I’net redux. Viral
marketing. “Farm-out” is the norm.)
Brand Outside
Strategy 1B:
Healthcare et al.:
Embracing an
e-Led Age of
Self-Determination
The control revolution. The
potentially monumental shift in
control from institutions to
individuals made possible by new
technology such as the Internet.
Source: Introduction, The Control Revolution,
Andrew Shapiro
“The Web enables total
transparency. People with
access to relevant information are
beginning to challenge any type of
authority. The stupid, loyal and
humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
“Imagine a world where a citizen
could search the globe to
assemble ‘my government,’
the ultimate in customized,
customer-centric services. Health
care from the Netherlands,
business incorporation in
Malaysia …”
Don Tapscott
“Greenspan
Discovers Investors
Are the Economy”
Source: Headline, AOL, 01.26.01
“I’m old enough to
remember when you went
into a bar in the summer,
they were watching a
baseball game. Now,
they’re watching CNBC.”
Byron Wien, Chief U.S. equity strategist,
Morgan Stanley Dean Witter
EBF*
to
EBI**
* Education By Fiat
** Education By Interest
“When they tell the story
of their project, they are
irresistible to
admissions officers!”
Dennis Littky
“Greater opportunity for
women is probably the
most significant gain
for human freedom in
the last century.”
Andrew Sullivan, The New Republic
Grameen Bank/Bangladesh
“It’s not people who aren’t creditworthy. It’s banks that aren’t
people-worthy.”
$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to nonpoverty threshold
Muhammad Yunus, Banker to the Poor
“The Grameen loan is
not simply cash. It
becomes a kind of ticket
to self-discovery and
self-exploration.”
Muhammad Yunus
Sooooo …
Is your strategy centered
around customer-client
empowerment & selfdetermination?
Hint: This means letting go
of traditional sources of
power!
Message: We are on the
cusp of a “People’s
[customer/ patient/ citizen/ etc.]
Revolution.”
How Dare They!
“Surfing the net is new route to
college: But counselors fear
that some students will pick
schools with little guidance”
Headline, p1A, USA Today, 10.03.00
Corporate Resistance to “It”
“It all goes back to fear of
losing control!”
The Cluetrain Manifesto
Impact #1(?):
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X
Info Consolidators X
Genetics & Devices
= YIKES!
1. Consumerism (Patientcentric Healthcare)
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“We expect consumers to
move into a position of
dominance in the early
years of the new century.”
Dean Coddington, Elizabeth Fischer, Keith
Moore & Richard Clarke, Beyond Managed Care
Today’s Healthcare “Consumer”:
“skeptical and
demanding”
Source: Ian Morrison, Healthcare in the New Millennium
“Medical care has traditionally
followed a ‘professional’ model,
based on two assumptions: that
patients are unable to become
sufficiently informed about their
own care to allow them a pivotal
role, and that medical judgments
are based on science.”
James Blumstein, Vanderbilt Law School
“He shook me up. He put his hand
on my shoulder, and simply said,
‘Old friend, you have got to
take charge of your own
medical care.’ ”
Hamilton Jordan, No Such Thing as a Bad Day
(on a conversation with a doctor pal, following
Jordan’s cancer diagnosis)
“If healthcare organizations don’t wake
up, smell the coffee – and get online
with real services, transactions, and
more for these e-consumers to do – the
newly empowered e-consumers will
become even more disgruntled with the
hornet’s nest of paperwork that plagues
the system.”
Douglas Goldstein, e-Healthcare
“What’s needed are comprehensive
strategies that leverage the latest
technology and provide the services that
eHealth consumers are demanding,
including convenience and customized
services such as online physician
interaction or online management of
health benefits and customized disease
management programs.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“It may be the most far-reaching evolution
of them all: the metamorphosis of passive
patient into consumer – and well-informed,
assertive consumer at that. The defining
axiom of traditional medicine – ‘doctor’s
orders’ is being turned on its head. These
days it’s the patients who are armed, the
doctors who must get wired to keep
nimble.” “E-health is the new house call.”
Richard Firstman, “Heal Thyself,” On Magazine (04.01)
“Consumerism”: HMO backlash
(e.g., plans with more choice). Alternative
Medicine, Wellness & Prevention
bias. Info availability (disease, health,
docs, support groups, outcomes). Boomers
(“I’m in charge!” Discretionary $$$$ to spend:
cosmetic surgery, vision improvement, fertility,
etc.). Self-care (chronic disease).
High
expectations (genetics, etc.) …
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
“E-consumers …
want knowledge
are already connected
want convenience
want it to be all about them
want control.”
Douglas Goldstein, e-Healthcare
“No one currently
‘owns’ the eHealth
Consumer. It’s an
open playing field.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“We find that eHealth
consumers are willing to pay
– and even switch health
plans – for the services they
most want.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“Savior for the Sick”
vs.
“Partner for Good
Health”
Source: NPR/VPR 08.15.00
“The ‘curative model’ narrowly
focuses on the goal of cure. …
From many quarters comes
evidence that the view of health
should be expanded to
encompass mental, social and
spiritual well-being.”
Institute for the Future
“In many ways, the nursing
profession is the most qualified
to respond to current changes
in the health system. Nurses’
training focuses more on the
behavioral and preventive aspects
of health care than does that of
physicians.”
Institute for the Future
“A 7-year follow-up of women
diagnosed with breast cancer
showed that those who confided
in at least one person in the 3
months after surgery had a 7-year
survival rate of 72.4%, as
compared to 56.3% for those who
didn’t have a confidant.”
Institute for the Future
Internet User,
F
41
$63,000 HHI
64% work FT
54% moms
6 hours/week online
Source: NetSmart Research
“Self-medication is the wave
of the future, whether the
[pharmaceutical] industry
likes it or not.”
Wall Street Journal (5-23)
DTC > Professionals
Claritin
Pravachol
Zyban
Evista
Propecia
Prilosec
Primera
Source: JAMA
“Online Medical Records
Seen Empowering
Patients”
Source: Headline, Boston Globe,
07.31.2000, re 1K docs and 700K
patients @ CareGroup
Determinants of Health
Access to care: 10%
Genetics: 20%
Environment: 20%
Health Behaviors: 50%
Source: Institute for the Future
Make time for your
most important
asset. Your health.
Ad for Mayo Clinic Executive Health
Program/Jacksonville, Orlando Airport
Message: Patients aren’t.
Consumers [will]
rule.
2. Demographics: The
BOOMERS Reach 55!
Boomer World
“From jogging to plastic
surgery, from vegetarian diets
to Viagra, they are fighting to
preserve their youth and
defy the effects of gravity.”
M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
“Pick up any copy of Glamour or
Men’s Health, and you’ll see pages of
advertisements encouraging readers
to enlarge their breasts, retard
baldness, correct their vision,
improve their smile, or relieve stress
through herbs, massage therapy,
acupuncture – you name it.”
Coddington, Fischer, Moore & Clarke,
Beyond Managed Care
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in
charge!” (4) “We’ll take no
guff from anyone.” (5) “We
know the emperor has no
clothes.”
IS/Web
3. The
REVOLUTION
Info Revolution
Consumerism (research, consultation, B2C, etc.)
Clinical Info Systems (guidelines and outcome
measurement, etc.)
100% Web-based (internal) Systems
Electronic Medical Records
Patient-physician email-consultation
Telehealth-Remote Monitoring
(biosensors, home testing, etc.)
Telemedicine (consultation, invasive treatment,
“global medical village,” etc.)
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
Henry Lowe, U. of Pitt. School of
“Broadband,
Internet-based,
‘multimedia’
electronic medical
records”
Medicine:
“Doctors Without Borders”
World Clinic/Dr. Daniel Carlin: e-mail
consultation & treatment for ex-pats,
global execs, etc. Developing world:
“They have the primary care doctors,
but no infrastructure to train
specialists. We become the
specialists.” More: “Telemedicine
Kiosks in Central America.” Etc.
*On Magazine 04.01
Telemedicine: E.g. …
HANC* [Home Assisted
Nursing Care]
*BP, ECG, pulse, temp
Telemedicine …
Reduces days/1000 patients and
physician visits for the chronically ill
Decreases costs of managing chronic
disease
Expands service areas for providers
Reduces travel costs to and from medical
ed seminars
Douglas Goldstein, e-Healthcare
Detroit Med Center:
$100M IS Makeover
Experiment: Surgical residents equipped with
Palm IIIxe. Med Director: “It’s not unusual to have
a team of 5 or 6 residents responsible for the
patients of 25 doctors. For each resident, that
could mean seeing 40 patients spread across 10
floors and 5 buildings.” Records work was
manual; but “Now you export the list of patients
to your Palm, with the room number for each
patient and with lab results from the last
72 hours.”
“Without being disrespectful, I
consider the U.S. healthcare
delivery system the largest cottage
industry in the world. There are
virtually no performance
measurements and no
standards. Trying to measure
performance … is the next
revolution in healthcare.”
Richard Huber, former CEO, Aetna
“A healthcare delivery system
characterized by idiosyncratic
and often ill-informed
judgments must be restructured
according to evidence-
based medical practice.”
Demanding Medical Excellence: Doctors and
Accountability in the Information Age,
Michael Millenson
“As unsettling as the prevalence of
inappropriate care is the enormous amount of
what can only be called ignorant care. A
surprising 85% of everyday medical
treatments have never been scientifically
validated. … For instance, when family
practitioners in Washington were queried about
treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137
strategies.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“With little fanfare, a gathering
revolution is transforming the everyday
practice of medicine. Owing more to
laptops than lab coats, this
is an information revolution, one that
is beginning to yield answers to the
most basic questions that haunt
those who are sick: Who shall live and
who shall die?”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“Quality of care is
the problem, not
managed care.”
Institute of Medicine (from Michael
Millenson, Demanding Medical Excellence)
RAND(1998): 50%,
appropriate
preventive care. 60%,
recommended treatment, per
medical studies, for chronic
conditions. 20%, chronic
care treatment that is wrong.
30% acute care treatment
that is wrong.
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
Various studies: 1 in 3,
1 in 5, 1 in 7, 1 in 20
patients “harmed by
treatment”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“Established state-of-theart cancer care – about
which there is no
longer any debate – is
erratically applied.”
Source: Institute of Medicine’s
National Cancer Policy Board
“In health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from
Demanding Medical Excellence: Doctors and
Accountability in the Information Age,
Michael Millenson
“Practice variation is not caused by ‘bad’ or
‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.”
Michael Millenson, Demanding Medical Excellence
“In a disturbing 1991 study, 110
nurses of varying experience levels
took a written test of their ability to
calculate medication doses. Eight
out of 10 made calculation
mistakes at least 10% of the time,
while four out of 10 made mistakes
30 % of the time.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
“With meticulous detail, historical
accuracy, and an uncommon
understanding of the clinical field,
Millenson documents our struggle
to reach accountability.”
Journal of the American Medical
Association, on Demanding Medical
Excellence: Doctors and Accountability in
the Information Age, Michael Millenson
“Patient by patient, problem by
problem – drug reactions, hospital
caused infections – Salt Lake City’s
LDS Hospital has attacked treatmentcaused injuries and deaths. One of the
secrets of LDS’s success is a custombuilt clinical computer system that
may serve as a national model for how
to save patient lives.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
Message: (1) Effective &
is
encompassing use of IT
the
healthcare revolution. (2) Get allthe-way on board or get
discarded. (3) The situation as
it stands is pathetic.
4. The “Consolidators”:
Fat or Thin?
WebMD
& assigns)
(or heirs
“Virtual health care webs force
providers to focus on their
areas of excellence and to
invest in areas where they can
generate a sustainable
competitive advantage.”
Healthcare.com: Rx for Reform, David
Friend, Watson Wyatt Worldwide
“The future of hospitals is
murky. A combination of
technological advances,
managed care, and changes in
Medicare reimbursement policy
means that the underlying
demand for inpatient services
will continue to fall.”
Institute for the Future
“America has twice
as many hospitals
and physicians as
it needs.”
Med Inc., Sandy Lutz, Woodrin Grossman
& John Bigalke
Message:
Somebody is
gonna get
this
right!
5. Genetics &
Devices
Genetics & Devices
Pharmacogenomics (“mini”busters,
rational drug design, personalized medicine,
gene therapy, vaccines--20% to 50%
prescriptions not work)
Neural Stem Cells
Minimally invasive surgery
Advanced imaging
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
“Recognizing that a single
misspelled gene means the
difference between being
poisoned and being cured was
the first victory for the new
science of pharmacogenetics.”
Newsweek (06.25.01)
Pharmacogenomics: End of Blockbusters
by End-of-Decade (Reuters/5-22)
Barrie James, Pharma Strategy Consulting: “We’re
moving from a blunderbuss approach to laserguided munitions, and it marks a sea change for
the industry. The implications for existing
business models are devastating.” Allen Roses,
SVP Genetic Research, GlaxoSmithKline:
“minibuster.” Rob Arnold, Euro head of life sciences,
PWC: “Once you start dealing with minority
treatments, small biotechs who are more nimble
and don’t need $500-million-a-year drugs to make
money could be at a real advantage.”
“Imagine the day that your
surgeon performs your heart
bypass sitting at a computer
thousands of miles from the
operating table. That day may
come sooner than you think.”
Newsweek (06.25.01)
“There is no question in my
mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon
the FDA’s approval of robotic partialbypass surgery
Message Summary: (1) An
unparalleled time for
imagination and bold
action. (2) A time of unprecedented
opportunities. (3) A time
of unprecedented risk.
Craig Venter, Celera
Genomics
Bill Haseltine, Human
Genome Sciences
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status:
$1.3T. 70M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in
which treated. 50% prescriptions not
work. 2X docs. 2X hospitals. IS primitive.
Accountability & measurement nil. And
everybody’s mad and feels powerless:
docs, patients, nurses, insurers,
employers, hospital administrators
and staff.
“Will biotechs be any better at [the new varieties
of] drug discovery than Big Pharma? In the
aggregate … they will be. There is nothing the
small companies are doing that the large
cannot. [But] research programs at big
companies can meander for years. ‘It’s much
more Darwinian in biotech,’ says [Triangle
Pharmaceuticals founder and former head of R
& D at Burroughs Wellcome] David Barry.
‘Investors tend to be much more demanding in
their expectations than any internal review
organizations in large companies.’ ”
Fortune/07.23.01
Is your strategy centered
around customer-clientpatient-citizen
empowerment & selfdetermination? Hint: This
means letting go of
traditional sources of
power!
Message: We are on the
cusp of a “People’s
[customer/ patient/ citizen/ etc.]
Revolution.”
How Dare They!
“Surfing the net is new route to
college: But counselors fear
that some students will pick
schools with little guidance”
Headline, p1A, USA Today, 10.03.00
Corporate Resistance to “It”
“It all goes back to fear of
losing control!”
The Cluetrain Manifesto
Brand Outside
Strategy 2A:
Women Rule!
?????????
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
50+%
Women …
of Web
users; 6 of 10 new users; 83%
of wired women are primary
decision makers for family
healthcare, finances,
education.
Source: Business Week; Jupiter Communications
$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!)
Men & Women on Thelma & Louise.
MEN: Sundance Kid; women who
get angry, swear, go to bars, leave
their mate. WOMEN: women
controlled by the men in their lives,
who would rather be dead than
oppressed.
Source: Judy Rosener,
America’s Competitive Secret
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
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps: Women love to
talk. Men talk silently to themselves.
Women think aloud. Women talk, men
feel nagged. Women multitask. Women are
indirect. Men are direct. Women talk
emotively, men are literal. Men listen like
statues. Boys like things, girls like
people. Boys compete, girls cooperate.
Men hate to be wrong. Men hide
their emotions.
“When a woman is upset,
she talks emotionally to
her friends; but an upset
man rebuilds a motor or
fixes a leaking tap.”
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps
Women and Healthcare
Women are … more dissatisfied,
frustrated by the way they are treated and
spoken down to by physicians, seek
more information, are more pressed for
time … and make 75% of health care
decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care
employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be
listened to, to be taken seriously,
to read about it, to think about it.
Women do not want … an
in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC
Davis (Cause: Guys are “in and out” of
stocks more often; women choose
carefully and hold on for the long term)
Investment Club Returns
Women-only clubs 1997 … 17.9%
Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment
Clubs 2000
8 … All male
19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men.
The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money
mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market.
Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide
their mistakes from their wives.”
Source: Newsweek 01.08.01
Marketing to Women: Help Them
Save Time!
80% … work
86% … cook
58% … run errands with kids
38% … take child to school
21% … go to the gym
21% … take outside classes
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done
indicates that women really care
about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Read This Book …
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 speak and hear a language of
connection and intimacy, and men
speak and hear a language of status
and independence. Men communicate
to obtain information, establish their
status, and show independence.
Women communicate to create
relationships, encourage interaction,
and exchange feelings.”
Judy Rosener, America’s Competitive Secret
[“The Hollywood scripts that
men write tend to be direct and
linear, while women’s
compositions have many
conflicts, many climaxes, and
many endings.”
Helen Fisher, The First Sex: The Natural
Talents of Women and How They Are
Changing the World]
[“I only really understand
myself, what I’m really thinking
and feeling, when I’ve talked it
over with my circle of female
friends. When days go by
without that connection, I feel
like a radio playing in an empty
room.”
Anna Quindlen]
What If …
“What if ExxonMobil or Shell dipped into their
credit card database to help commuting women
interview and make a choice of car pool
partners?”
“What if American Express made a concerted
effort to connect up female empty-nesters
through on-line and off-line programs, geared to
help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out
to deliver quick, efficient service. But, in the
female mold, women were being turned off by
the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment.
Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her
intelligence and ability.”
EVEolution
“Women don’t buy
They
join them.”
brands.
Faith Popcorn, 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?”
THIS JUST MIGHT BE THE BIGGEST
“THING” IN THIS SEMINAR.
THINK
ABOUT IT!]
[PLEASE:
Psssst! Wanna
see my “porn”
collection?
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!”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
“If we are single, they say we
couldn’t catch a man. If we are
married, they say we are
neglecting him. If we are divorced,
they say we couldn’t keep him.
If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female
political candidacy
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
(272?)
16;
Some Possible First Steps
Data! (market research/best practices)
Women as project managers/critical
mass for many/most new product &
marketing teams
Strategic recruitment & promotion
program (D&T)
“Critical Mass” of women on the Board
(“rule of three”)
“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!”
Brand Outside
Strategy 2B:
Welcome to
“Old World”!
“ ‘Age Power’ will
st
rule the 21 century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
[ Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA]
TP to IHRSA: Look this way!
I
am your ideal body
type!
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
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
“Such a critical mass of
older women with a tradition
of rebellion and
independence and a way of
making a living has not
occurred before in history.”
Gerda Lerner, historian
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
“If you’re 35 years old and younger, you’re
still acquiring possessions. If you’re
between 35 and 50, you’re buying services.
And if you’re over 60, you’re buying
experiences. Much of our marketing
culture is Gen X, and they’re focusing on
themselves and Gen Y, and not doing a
particularly great job of focusing on
boomers and seniors.”
Paco Underhill, Business Week OnLine, 01.04.01
Message: WHAT AN
[overlooked] OPPORTUNITY!
*Italy, first time in human history
Source: Ken Dychtwald, Age Power
Census Y2000
A First: Married couples with
children < 25% of
households! (23.5% vs. 45% in ’60)
35-54: Up 32%, to 82M (“This age
group is used to redefining>” – Dan Growhoski,
True North Communications)
Brand Outside
Strategy 2C:
Welcome to
“Green World”!
50% to 36%:
Protect Environment >
Economic Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
“Of all the ways the company
will be judged over the next
decade, none will be
greater than our
response to the issue of
climate change.”
William Clay
FORD Jr.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered:
M, 35%; F, 47%
Source: www.pulse.org & USA Today
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
Brand Outside
Strategy XX:
Global is for
Everyone!
THE EIGHT
“RULES”
Rule #1
There’s no such
thing as “too small to
be global.”
[GET A LIFE.]
Rule #2
If “it” is [truly] good
… then it’s good
enough for …
THE WORLD.
Rule # 3
When?
Now.
Rule #4
Hang out …
vigorously!
Rule #5
Seek Talent!
Send Talent!
Message(s) ABB, Shell
ELITE Global Cadre
Genuinely Global BOARD
Rule #6
Glom onto a
[modest-sized]
partner … who
loves/ “gets” you!
Rule #7
Tailor!! [But don’t give
away the store.]
Rule #8
Phil Crosby
notwithstanding,
you’ll not [likely] “get
it right the first time”!
Brand Outside
Strategy 3A:
Design Matters!
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
“What’s imperative is the
creation of a style that
becomes a culture linking
you to the community. You
can only do that through
good design.” – Anita Roddick
Source: Design Council [UK]
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
“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
“In Europe, you have
to have inspirational
vehicles, that people
are proud to own and
lust to drive.”
Nick Scheele, Chmn., Ford Europe
DESIGN transforms
the perception of
what’s possible.
E.g.: Plate-glass
windows. Apple II.
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
P.S.
PURE
DESIGN
MEDIUM
Web =
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
Design =
“There are three basic
principles behind any welldesigned product:
truth, humanity, and
simplicity.”
Sohrab Vossoughi,
Ziba Design
Design =
SIMPLICITY … HONESTY
… ACCESSIBILITY …
ENJOYMENT
Jonathan Ive (iMac)
Design “is” … WHY I
GET MAD.
MAD.
Wanted: Dead
[preferably] or Alive:
THE DESIGNER OF
MY RADIO SHACK
PHONE. Major
Reward!
“I’m just going to come right out and say
it: Ericsson lost $2.3B on mobile phone
because
its products
are ugly.”
handsets last year
Peter Martin (FT 04.24.01)
Design is never
neutral.
DESIGN is the
principal difference
between love and hate!
Hypothesis:
THE BASE CASE: I am a design fanatic. Personally,
though not “artistic,” I’m a cool-stuff guy. I love what
I love and I hate what I hate. [Openly.]
But it goes
[much] further, far beyond the personal. Design has
become a professional obsession.
I – SIMPLY – BELIEVE THAT DESIGN PER SE IS
THE PRINCIPAL REASON FOR EMOTIONAL
ATTACHMENT [or detachment] RELATIVE TO A
PRODUCT OR SERVICE OR EXPERIENCE.
Design, as I see it, is arguably the #1 determinant of
whether a product-service-experience stands out … or
doesn’t. Furthermore, it’s “one of those things” …
that damn few companies put – consistently – on the
front burner.
Message:
“Services” are Not Intangible!
You “give off” hundreds of
design cues … daily!
YOU ARE A DESIGNER!
First Steps: “Beauty Contest”!
• Select one form/document: invoice, air
bill, sick leave policy, customer returnsclaim form
• Rate the selected doc on a scale of 1 to 10
[1 = Bureaucratica Obscuranta/ Sucks; 10
= Work of Art] on three dimensions:
Beauty, Grace, Clarity
• Re-invent!
• Repeat, with a new selection, every 15
working days.
“My favorite word is grace –
grace,
saving grace, grace under
fire, Grace Kelly. How we live
whether it’s amazing
contributes to beauty – whether
it’s how we treat other people or
the environment.”
Celeste Cooper, designer
Great design =
One-page
business plan (Jim
Horan)
Life 101: Contracts
What are the 5 (not, 4, not 6) Main Points?
Please summarize on ONE page.
(ENGLISH, PLEASE.)
(Let the bloody lawyers and agents do their masturbatory
acts on the “last 98%.”)
Understand that if it’s “good,” we’ll all be
healthy & wealthy & wise; if it’s bad,
somebody’s lawyer will figure a Way Out …
fast. (McK: If you ever have a Problem, we’re gone tomorrow a.m.)
Design Rules!
[Literally]
Palm Beach County’s U.C.B.*
[*Utterly Confusing Ballot]
Message: Design is
the wellspring of
branding. Great design
takes guts and is “soul
deep.”
Compare 10 order forms or data
fields at a Web site.
Save great and awful junk mail.
Go on a <$10 shopping spree.
Pay attention to signage. (And
instruction manuals.)
Start a notebook. NOW.
Design-Minded Company: Credo
Design matters! Everywhere!
The Brand Promise rules! Everywhere!
All can answer: WHO ARE WE? HOW ARE
WE DISTINCT?
Words such as beauty & grace & emotion
& connection & Wow & adventure are okay
’twixt 9 and 5.
Non-Wow doesn’t cut it. Anywhere!
We aim to attract Best-In-Planet TALENT;
non-traditional hiring, with an emphasis
on the arts, is part of this. Diversity-R-Us!
Design-Minded Company: Operating Philosophy
All work is the product of Hot Teams of peers.
Hierarchy is minimal, and usually a distraction.
We understand that “disrespect” is the
ultimate in respect in crazy times.
The Work Matters! Wow … or bust!
All work reflects design-mindfulness
& the brand promise.
Promotion comes immediately if the work is Wow.
NO BULLSHIT. We keep our word to
our teammates and other partners.
Integrity = No.1 outcropping of design-mindfulness.
We are a business. Results matter!
“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
“The real secret of the fashion
business is that it is prepared to put
up with difficult, temperamental,
quirky people in the name of style –
and ruthlessly dump them if they
lose their ability to please a
fickle public.”
Peter Martin (FT 04.24.01)
All the “cool
stuff” looks [exactly]
like all the other “cool
stuff” in this , THE
BRIGHT NEW AGE OF
DESIGN.
Message:
“Our innate idiosyncrasies are
actually more endearing to
others than our most glorious
achievements.” – Veronique Vienne, The
Art of Imperfection. “Glorious
imperfections” – Sam Phillips, Sun
Records, on identifying & presenting raw talent
The Art of Imperfection/Veronique Vienne
The art of making mistakes
The art of being shy
The art of looking like yourself
The art of having nothing to wear
The art of not being right
The art of being disorganized
The art of having taste-not good taste
The art of not knowing what to do
The art of being silly
The art of being neither rich nor famous
“The best beauty product is to
have a life. A real life. With
challenges, disappointments,
stress and laughter. The muchtouted inner beauty is a natural
radiance that comes as a result of
mental and emotional
involvement.”
Veronique Vienne, The Art of Imperfection
“When I am bored
I am a thousand
years old.” “Women
should have pleasurable
flaws.”
Coco Chanel, via Veronique Vienne,
in The Art of Imperfection
“Against
Smoothness”
(Harper’s Magazine 07.2000)
“The most beautiful thing we can
experience is the mysterious. It is
the source of all true art and
science. He to whom this emotion
is a stranger, who can no longer
wonder and stand in awe, is as
good as dead.”
Einstein
“True
beauty is embodied
in irrationality and
coincidence.”
The Surrealists:
The Tate Modern
Mark Rothko
Design for
Delight
book title, Tate Modern
Message: Men cannot
design for women’s needs.
Period.
Pursue
radical
simplicity!
The Complexity Conundrum
Complex problems call for
complex systems. (True.)
Complexifiers take refuge behind complex
systems. (Complexifiers complexify complex systems.)
Those who make the history books are
simplifiers. (E.g., Gordon Bell: 500 v. 50.)
If you can’t explain it in one page, it
ain’t worth explaining.
Brand Outside
Strategy 3B:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre
& Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based
Leadership
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile.
Why? Because it’s focused. It has a
plot, a reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
Plot
Williams Sonoma = 5 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Garnet Hill = 9
L.L. Bean = 4 [was 9+]
Colonial Williamsburg = ?
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Mantra: “Any good can be
ing-ed”
the driving experience
the pumping experience
the sitting experience
the reading experience
the washing experience
the cooking experience
Joseph Pine & James Gilmore, The Experience
Economy: Work Is Theatre & Every Business a Stage
Client: “We’re not like Nike! We sell paper clips , 9mm
bolts, who can be bothered?”
JK: “The whole world can be bothered if you brand
Nike
sells the experience of using Nikes,
the feeling of being a winner. And they
them well. Nike does not actually sell shoes.
condense the message into just three words:
It is a question of being the
only one, of offering the market
something unique.”
Just Do It!
Source: Jesper Kunde, A Unique Moment
Message:
“Experience” is the
“Last 80%”
“Experience” applies to
all work!
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
Hire a
theater director, as
a consultant or
FTE!
First Step (?!):
HP Revisited
PWC Consultants lead Business
Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service
Economy”)
Terrific Servers (“Goods Economy”)
“Experience”: Home
to [tomorrow’s]
Market Cap!
THIS IS A
BIG
DEAL!
Markets to networks. Hierarchies to networks.
Sellers and buyers to suppliers and users.
Ownership to access. (Age of Access.)
Marginalization of physical property. Weightless
economy. Protean generation. Outsourcing of
everything. Franchising of everything. (Business
format franchising.) (Leasing DNA.) Everything is a
service/platform for services delivery. (Give away
the goods, charge for the services. VALUE = THE
RELATIONSHIP. “Share of market” to “Share of
customer.”) Every business is show business.
Source: Jeremy Rifkin, The Age of Access
Brand Outside
Strategy 3B.1:
A Case in Point: The
Four Seasons
“Practice
Management”
“Lessons” from
the Four
Seasons Boston
Why I Stay at the
Four Seasons Boston
Comfort.
good to be home.”)
(“It’s
Why I Stay at the
Four Seasons Boston
The doorman. (Recognizes
me.)
“The two most
powerful things I know
in existence:
a kind word and a
thoughtful gesture.”
Ken Langone, CEO, Invemed Associates
Why I Stay at the
Four Seasons Boston
access to
technology is
The
excellent. (I’ve trained them in this!)
Why I Stay at the
Four Seasons Boston
Chalone
chardonnay they leave
The bottle of
for me. (They “remember.”)
Why I Stay at the
Four Seasons Boston
The fact that the GM
always puts his desk
chair in my room when
I’m in town.
Why I Stay at the
Four Seasons Boston
The fact that I feel
okay arriving in shorts
and a baseball cap. (Even
though they serve princes & sheiks.)
Why I Stay at the
Four Seasons Boston
The clientele.
Why I Stay at the
Four Seasons Boston
No hairs in the
bathtub. (Operational
excellence.)
Why I Stay at the
Four Seasons Boston
Responsiveness. (Operational
excellence.)
Why I Stay at the
Four Seasons Boston
The Brand.
(I trust Izzy.)
Why I Stay at the
Four Seasons Boston
Trust.
Why I Stay at the
Four Seasons Boston
The windows open. (Okay,
call it an idiosyncrasy.)
Why I stay at the
Four Seasons Boston
The view is great. (I am
sensitive to my surroundings … even in the midst of a
one-night stand.)
Why I Stay at the Four
Seasons Boston: Payback!
It ain’t free.
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“The idea that business is just a numbers
affair has always struck me as preposterous.
For one thing, I’ve never been particularly
good at numbers, but I think I’ve done a
reasonable job with feelings. And I’m
convinced that it is feelings – and
feelings alone – that account for the
success of the Virgin brand in all of
its myriad forms.”
Richard Branson
“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
“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
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voila, you’re on course. They are
wrong. The task is much bigger. It is about fulfilling our
potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT
DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER
THE WORLD IS ACTUALLY UNIQUE? The brand
has to give of itself, the company has to give of
itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not –
you want to be … UNIQUE … NOW.”
Jesper Kunde, A Unique Moment
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.”
“Most executives have no
idea how to add value to a
market in the metaphysical
world. But that is what the market
will cry out for in the future. There
is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, A Unique Moment [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Brand = You Must Care!
“Success means never
letting the competition
define you. Instead you have
to define yourself based on a
point of view you care deeply
about.”
Tom Chappell, Tom’s of Maine
“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
“A great company
is defined by the
fact that it
is not compared
to its peers.”
Phil Purcell, Morgan Stanley
“We’re not going to be driven
by where we think a funding
agency would like to see us go.
We’re going to build our case …
and then find an organization
that agrees with us.”
Stephen Spongberg, Polly Hill Arboretum
Jesper Kunde’s Challenge:
All business processes
should be aligned with the
Brand/Value Promise.
Think … Brand Driven
Systems!
Remember!
Talent = Brand*
* And don’t forget Hal R.
Remember: What’s your company’s
Employee Value Proposition, per Ed
Michaels et al., The War for Talent
A&P
Fun in the
Sun Store
Edgartown MA:
“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) Big Enchilada:
Try ’em on a skeptical Client!
Write copy
for a bookmark!
(Etc.)
Exercise :
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: 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
Message: REAL Branding is personal.
REAL Branding is integrity. REAL
Branding is consistency & freshness.
REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL
Branding is why I/you/we [all] get out of
bed in the morning. REAL Branding
can’t be faked. REAL Branding is
a systemic, 24/7, all departments,
all hands affair.
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
[Tell the
TRUTH
P-l-e-a-s-e ]
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“It’s a question of how to marshal our resources. I’d
like us to be
really great in four or five
areas. We have to make some hard choices.
we’ve got to get a
story about science that’s
completely understandable. To get
“The big challenge is,
money in wholesale amounts, you’ve got to sell
concepts.”
Larry Small, Smithsonian Institution
“EXACTLY HOW
ARE WE
DRAMATICALLY
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DIFFERENCE TO THE
CLIENT ”
“Salt is salt is salt. Right? Not when it
blue box
comes in a
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
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the
right mentality. You go to your team and
you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded
sub-$200 watch market, they made it into
a brand name, named after the most
irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
Brand Outside
Reprise: Wimps &
Weenies Need Not
Apply!
Re-invention via ecommerce:
Why Tough
Total commitment to total
enterprise [and supply
chain] reinvention!
Self-Determination: Why Tough
Cede Control
Women’s [Aging,Green] Market:
Why Tough
Encompassing
Attitude
CULTURAL!
Design: Why Tough
True-believer-dom-ship
Encompassing/Cultural
Experience: Why Tough
Total
Reorientation
Going Global: Why Tough
’tude!
Patience
Brand Power: Why Tough
Way of Life
Forever!
Passion Rules!
Touches Everything!
It Am Me [Personal!]
Message :
Not for the Faint
of Heart!
Our Journey
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Brand Inside
Brand Org:
Lean, Linked,
Internet-driven, Virtual
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
Brand Inside
Brand You:
Distinct …
or
Extinct
Brand Inside
Brand Talent: The
Great War for Talent
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Sameness Trap
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
Brand Outside
Strategy 1A:
Healthcare et al.:
Embracing an
e-Led Age of
Self-Determination
Brand Outside
Strategy 2A:
Women Rule!
Brand Outside
Strategy 2B:
Welcome to
“Old World”!
Brand Outside
Strategy 2C:
Welcome to
“Green World”!
Brand Outside
Strategy 3A:
Design Matters!
Brand Outside
Strategy 3B:
It’s the Experience!
Brand Outside
Strategy 4:
BRAND POWER!
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
I. Personal Stuff …
Indefatigable
“indefatigable” … “courage” … “love the
thrill of the hunt” … “must not have just a
desire to win, but a need to win” … “enjoy
doing things they don’t know how to do”
… “seek out discomfort zones in order to
gain new experiences” … “willing to piss
people off” … “LEADERS NEED TO
BE THE ROCK OF GIBRALTAR ON
ROLLER BLADES”
mean
“A real superstar is
in a
particular way. He is Michael Jordan or
Cal Ripken, greedy for records and
history. Armored and self-contained, his
inner core is a hard knot of physical
talent and fierce will. Nothing penetrates
that core, and anybody or anything that
gets too close is out of his life.”
Michael Sokolove, “The last Straw”
“I think I’m happy. It
may not seem like I’m
happy on my face, but
I’m also greedy. And
I’m not done.”
Shaq O’Neal, on why he didn’t go nuts when the
Lakers finished the best NBA post-season ever
You Must Care!
“Leaders care!” … “The true
definition of leadership is service.”
… “genuinely care” … “Leaders
CARE!” … “Leadership is service.”
… “LEADERS SERVE.”
Real!
“Leaders are living individuals whom
employees can smell, feel, touch their
presence” [the elevator test] …
“Leaders love their work. That passion
is infectious.” … “ ‘It’s only business,
not personal’ … IT ALWAYS IS
PERSONAL.” … “If you love what you
do, it shows. You cannot fake love
and succeed.”
Integrity
“ooze integrity” … “certain things
I’ll never do” … “shoulder the
unpleasant tasks”
Miscl.
Know yourself … Aware of your
impact on others … Have an
Honest Coach … Take breaks
II. Tactics …
“Sweat the small stuff” [cultural
giveaways: the clean parking lot,
etc.] … “Build/Design” beats
“Design/Build.” … Ferret out the
truth/Find cool internal sources:
LEADERS NEVER HEAR THE
TRUTH … “COMMUNICATE
RELENTLESSLY” … ASK BETTER
QUESTIONS …
“Hire smart – go
bonkers – have grace
– make mistakes –
love technology –
start all over again.”
“Leadership is the
PROCESS of
ENGAGING PEOPLE
in CREATING a
LEGACY of
EXCELLENCE.”
Leadership 2001
Talent-obsessed (Great>>>Good)
Opportunity Structure (Fast, Cool,
Accountable, Rewarding)
Pursuit of a Cause (Brand-driven)
Content-driven (“PSF”/WOW! Projects)
State-of-the-Art (Technology!)
Adventuresome Culture (Disrespect, Short
Memory, Sense of Humor)
Culture of Hyper-urgency
Enthusiast-in-Chief
TP’s BIG BEEF: (Many) CEOs are NOT
(Really) Serious (Obsessed) about:
Internet’s encompassing potential
Talent development
Branding/Design
“Marketing” to: Women, the Ageing,
African-Americans, Hispanics
Creating an HSDE (e.g., Mkt. Share vs. Mkt.
Creation; encouraging a Culture of Disrespect)
“I don’t
know.”
Karl Weick
“The leader who says ‘I don’t know’ essentially
says that the group is facing a new ballgame
where the old tools of logic may be its undoing
rather than its salvation. To drop these tools is
not to give up on finding a workable answer. It is
only to give up on one means of answering that
is ill-suited to the unstable, the unknowable, the
unpredictable. To drop the heavy tools of
rationality is to gain access to lightness in the
form of intuitions, feelings, stories, experience,
active listening, shared humanity, awareness in
the moment, capability for fascination, awe,
novel words and empathy.” - Karl Weick
Leaders-Teachers Do Not “Transform People”!
Instead they (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?) express their innate
curiosity and (4) engage in a vigorous discovery
voyage (alone and in small teams, assisted by an extensive
self-constructed network) to (5) go-create places they
(and their teachers-leaders) had never dreamed existed/
they could go.
Weick I
Uncertainty will be based less on insufficient
facts and more on insufficient questions.
There will be fewer experts and more novices.
There will be more of a premium on staying in
motion than on detaching and reflecting.
There will be more migration of decisions to
those with the expertise to handle them, and
less convergence of decisions on people
entitled by rank to make them.
Weick II
There will be fewer attempts to capture the big
picture and more attempts to capture the big
story, with its ongoing, dynamic plot.
There will be more focus on updating and
plausibility and less on forecasting and
accuracy.
There will be more improvisation and fewer
routines.
There will be more humility and less hubris.
Source: The Future of Leadership, Warren Bennis et al.
YOU
CAN’T KEEP UP!
YOU DON’T HAVE
THE ANSWERS!
BossMessage2001:
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
Priority #1
“To Don’t ” List
“One of the hardest things you have to do in
running a company is not lie to yourself. Let’s
say I start 10 new ideas. Two are clear winners,
two are clear losers. I’ve got six things in
between. I always kill the clear losers. The
problem is we let the six in the gray zone live
because we rationalize that they’re not failures.
‘Ah, it’s going to work.’ ‘Ah, it’s coming along.’
‘Ah, just a little more.’ The reality is we
should think of everything except clear
winners as losers.”
Bob Pittman, AOL Time Warner
Brand Leadership
Passion Rules!
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.]
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
“You must be
the change
you wish to see
in the world.”
Gandhi
“It is necessary for the
President to be the
nation’s No. 1 actor.”
FDR
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Stories of identity – narratives
that help individuals think about
and feel who they are, where
they come from, and where they
are headed – constitute the
single most powerful weapon
in the leader’s arsenal.”
Howard Gardner, Leading Minds: An
Anatomy of Leadership
“Create a
Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
“As Ministers of The
Republic of Tea, our
not-so-covert mission
is to carry out a Tea
Revolution.”
Ron Rubin & Stuart Avery Gold,
success@life
“Our free and open immigration policies
welcome all who wish to flee the tyranny of
coffee crazed lives and escape the frazzled fast
paced race-to-stay-in-one-place existence that
it fuels. In our tiny land, we have come to learn
that coffee is about speeding up and losing
sight, while tea is about slowing down and
taking a look. Because tea is not just a
beverage, it is a consciousness altering
substance that allows for a way of getting in
touch with and taking pleasure from the beauty
and the wonder that life has to offer.”
Ron Rubin & Stuart Avery Gold, success@life
Ben Zander:
“I am a
dispenser of
enthusiasm.”
“Entusiasmatore”
Word invented by Silvio Berlusconi, meaning
enthusiast-salesman
“A leader
is a dealer
in hope.”
Napoleon
“[Ronald Reagan]
radiated an almost
transcendent
happiness.”
Lou Cannon, George (08.2000)
“It is impossible to claim that all good teachers
use similar techniques: some lecture nonstop
and others speak very little; some stay close to
their material and others loose the imagination;
some teach with the carrot and others with the
stick. But in every instance, good teachers
share one trait: a strong sense of personal
identity infuses their work. ‘Dr. A is really there
when he teaches.’ Mr. B has such enthusiasm
for his subject.’ ‘You can tell that this is really
Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
“I’d rather regret
the things I have
done than the
things I have not.”
Lucille Ball
“If you ask me what I
have come to do in
this world, I who am
an artist, I will reply, I
live my
life out loud.”
am here to
Emile Zola
“Let’s make a
dent in the
universe.”
Steve Jobs
Have you
changed
civilization
today?
Source: HP banner ad