Tom Peters SeminarM3
Rollercoaster Days:
Learning to … Rock & Roll!
Raymond James
Las Vegas/03.29.2001
Everything has changed: E.g.: Profits & cash
flow matter in valuing a stock! The I’net & B’tech
revolutions haven’t nullified the business cycle.
“Everyman” is not panicking.
Nothing has changed: E.g.: 25 years of
whitewater ahead!! There is a New Economy. The
Internet will change EVERYTHING. There are
many revolutions to come … hence many
unforeseen winners & many unforeseen losers.
Where’s the bottom: NOBODY HAS A CLUE.
Duke has a good basketball team. Don’t short
Krispy Kreme!
“There will be more
confusion in the the
business world in the
next decade than in any
decade in history. And the
current pace of change will only
accelerate.”
Steve Case
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger
between humans and computers that is so
rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
BIG
MESSAGE
#1:
Confusion reigns.
Acknowledge it.
THRIVE ON IT.
Structure
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
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Brand Inside
Brand You:
Distinct …
or
Extinct
White Collar
Revolution!
2010 “Demographics”:
By 2010, full-time
workers will be in the
minority
Source: MIT study (28August2000)
“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 SurvivalSkillsKit2000
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Finishing Skills
Entrepreneurial Instinct
CEO/Leader/Businessperson
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
BIG
MESSAGE
#2:
Different or
Dead!
Brand Inside
Brand Talent: The
Great War for Talent
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, COO, Enron
From “1, 2 or you’re out” [JW]
to …
“Best Talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
MantraM3
Talent = Brand
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
Women and neweconomy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
“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
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
BIG
MESSAGE
#3:
Best talent
wins! [Women =
Best Talent?]
Brand Inside
Reprise
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
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
Quality Not Enough!
“While everything may
be better, it is also
increasingly the
same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
What’s Special?
“Customers will try ‘low cost
providers’ because the
Majors have not given them
any clear reason not to.”
Leading Insurance Industry
Analyst (10-98)
“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
BIG
MESSAGE
#4:
One more Time:
Different or
Dead!
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders
routed to supplier who ships direct
Gross margin:65%; Net margin: 28%
Annual savings in service
and support from customer
self-management: $550M
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)
Welcome to
D.I.Y. Nation!
“Changes in business processes will
emphasize self service. Your costs as
a business go down and
perceived service goes up
because customers are conducting it
themselves.”
Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
“Ebusiness is about rebuilding
the organization from the
ground up. Most companies today
are not built to exploit the Internet.
Their business processes, their
approvals, their hierarchies, the
number of people they employ … all of
that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
“There is 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
imagined before!
…
BIG
MESSAGE
#5:
Embrace the
Web! [Or die.]
Brand Outside
Strategy 1A:
Embracing an e-Led Age
of Self-Determination
“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
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
“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
“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.”
Richard Firstman, “Heal Thyself,” On Magazine (04.01)
THE FUTURE: Patients Rule!
Control Over Aging! [M&F Cosmetic Surgery, Viagra]
Targeted Therapies = High Expectations
The Internet! [meds, expert consultation, infoknowledge incl. outcome data & own recs, interaction
with peers & docs, awareness that experts aren’t]
Alt Therapies! [more visits, some insurer recognition]
Awareness [medicine as front-page news, ads]
Boomers! [#s, $$$, Ethos of self-control]
Prevention/Wellness
HMO [no-choice] Revolt
“Age of Talent” [Be nice, boss!]
Speed! [surgicenters, out-patient, self-admin regimens]
Sooooo …
Is your strategy centered
around customer-client
empowerment & selfdetermination?
Hint: This means letting go
of traditional sources of
power!
Brand Outside
Strategy 2:
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
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
“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.”
Faith Popcorn
Mars & Venus!
One side of a cell phone
conversation, Woods
Hole to Vineyard Haven
ferry, March 23, 2001
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
‘How was school today?’ a girl
usually tells her mother every
detail of what happened, while a
boy might grunt, ‘Fine.’ ”
EVEolution
“Women don’t buy
brands. They
join them.”
Faith Popcorn, EVEolution
“Honey, are you sure
you have the kind of
money it takes to be
looking at a car like
this?”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
Profs. Terrance O’dean 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)
BIG
MESSAGE
#6:
(1)
is
your client! (2) She is
NOT he!
Brand Outside
Strategy 3:
Welcome to
“Old World”!
“‘Age Power’ will rule
st
the 21 century
“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!*
*18-24: XFL
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
[ 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/5M auto loans
$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
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
BIG
MESSAGE
#7:
is
getting older.
[Trends #1, #2 – or #2 & #1,#3:
Women,
Aging,
Greening]
Protect the environment: 52%
Develop more energy: 36%
Equal: 6%
No opinion or Other: 6%:
Source: Gallup 3-5 March 2001
Brand Outside
Strategy 4:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“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
“Brand Promise” Exercise: (1) Who
Are WE? (1 page, 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!
“Create a
Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00)
“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
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.
“WHO ARE
WE?”
“WHO
AM I ?”
“EXACTLY
HOW AM I/
ARE WE
DIFFERENT?”
“HOW DO I
CONVEY THAT
DIFFERENCE TO
THE CLIENT ”
“You must be the
change you wish
to see in the
world.”
Gandhi
Brand Leadership: ENTHUSIASM RULES!
“I am a
dispenser of
enthusiasm.”
Ben Zander:
TP’s ultimate accolade:
“Charles is an
enthusiast!”
“A leader is a
dealer in hope.”
Napoleon
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“Let’s make a
dent in the
universe.”
Steve Jobs
BIG
MESSAGE
#8:
Who
your
ARE
CAUSE?
you? What’s