Issue Y2K The Great War for Talent!

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TOM PETERS’

LESSONS IN LEADERSHIP

Philadelphia

21 March 2000

(Day #81 of the New Millennium)

Hen scratches @

37,000 feet …

Microsoft = R.O.W.

Microsoft >

GM + Ford +

Boeing + Lockheed Martin +

Deere + Caterpillar + USX +

Weyerhaeuser + Union Pacific +

Kodak + Sears + Marriott +

Safeway + Kellogg

Source: Business Week data through 5-99

Microsoft = R.O.W. (II)

Microsoft >

GM + Ford Boeing + Lockheed

Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union

Pacific + Kodak + Sears + Marriott + Safeway + Kellogg

+ McDonald’s + Bank One +

General Mills + American Airlines

+ United Airlines + + Delta Air

Lines + US Airways +

Quaker Oats

Source: Yastrow Marketing (through 11-23-99)

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

Just Say No …

“I don’t intend to be known as the ‘King of the

Tinkerers.’ ”

CEO, large financial services company

(New York, 5-99)

64/24

Goal?

“It means nothing less than the total reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPoint

Ford + Yahoo!

Ford + Oracle

Ford + HP/MCIWorldcom

Etc.

Etc.

Tony(White)-World

Perkin-Elmer to PE Corp./

Sell “core bus.”/ Dump NAME!

Now: PE Biosystems,

Celera Genomics (Craig Venter)

$1.5B (’95) to $24B

???????????????????

Warner Lambert

&

Pfizer

“Medicine looks likely to change more in the next

20 years than it has in the last 200.”

British Medical Journal (11-11-99)

“There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.”

Steve Case (2-00)

“We are in a

brawl with no rules.”

Paul Allaire

S.A.V.

T.T.D.s

The next slide is the first of many

“T.T.D.” activities. I.e.: Things To Do.

These are by and large shorthand forms of training exercises I use.

Also: Most of these T.T.D. slides have accompanying Notes.

(See following Slide.)

Tom Peters

T.T.D./True or False:

“incrementalism”

VERSUS

“innovation”?

Notes Page

• This is a daunting issue. There is no “right answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention.

• Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance

Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF

TIME! KEEP IT PRACTICAL!

Seminar Y2K

Brand

Everything

:

Distinct or Extinct!

Brand It!

Now, More Than Ever!

“The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant,

Management [New Zealand]

Part I: Forces @ Work

Part II: Brand Inside

Part III: Brand Outside

Part IV: Brand Leadership

Forces @ Work

The Destruction

Imperative!

Forget > Learn

“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”

Dee Hock

“It is generally much easier to kill an organization than change it substantially.”

Kevin Kelly, Out of Control

Q:

What do you do when you are a big, dopey company and out of ideas?

A:

You merge with another big, dopey company that doesn’t have any ideas either.

R:

An incredibly big, incredibly dopey company

… going nowhere.

“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman

Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ”

Mark Sirower, The Synergy Trap

“Talent” and a $2T enterprise??????

“Acquisitions are about buying market share.

Our challenge is to create markets.

There is a big difference.”

Peter Job, CEO, Reuters

“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.”

Art Reidel, CEO, Pharsight

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months.

We buy the engineers and the next generation product. …”

John Chambers, Cisco

Dept. Head I = Sports G.M.

Dept. Head II = V.C.

G.M.

= The Recruitment and

Development of Top Talent.

[Period!]

V.C.

= Bets on “Talent.” Bets on Projects. [Period!]

Silicon Valley Success Secrets

“Pursuit of risk”: 4 of 20 in V.C. portfolio go bust; 6 lose money; 6 do okay; 3 do well; 1 hits the jackpot

Source: The Economist

“R & D”

Intel’s venture fund:

275 investments, $3.5B

Source: Fast Company (12-99)

T.T.D.

What are the specifics of your [personal, unit]

“Forgetting Strategy”?

Notes Page

• Discuss the idea of “learning” versus

“forgetting.” I THINK THIS IS A LOT MORE

THAN A “SEMANTICS DEBATE.” Assuming you agree with me, what – very specific – steps are you taking to move beyond the Assumptions du

Jour?

• Hint: This holds for a 1999 dot.com startup as much as for an elderly company.

T.T.D.

Discuss the G.M./V.C.

“strategy” as it applies to your unit.

Notes Page

• What do “G.M.s” do? [Invite one to talk to your group.] Do you do what they do? If not, why not? How about a “G.M.

Strategy”?

• Repeat the above for the Life of a Venture

Capitalist.

T.T.D.

Evaluate your portfolio of projects [and people]: Are you placing enough interesting [long shot?] bets?

Notes Page

• Be brutally honest!

• Hint: This holds for you and me as individuals as well as for our unit.

C.E.O. to

C.D.O.

The Gales of Creative Destruction

+29M = -44M + 73M

+4M = +4M - 0M

“In This Expansion, As

Business Booms, So

Do Layoffs:

Jettisoning Without

Guilt”

The Wall Street Journal

03-13-00 (P. 1)

Paradox Redux

Atlanta: +113,600 = #1 metro area

Layoffs [major]: BellSouth,

Lockheed, Coca-Cola

Built to Last v. Built to Flip

“The problem with Built to Last is that it’s a romantic notion. Large companies are incapable of ongoing innovation, of ongoing flexibility.”

“Increasingly, successful businesses will be ephemeral. They will be built to yield something of value – and once that value has been exhausted, they will vanish.”

Fast Company (03-00)

Message from Seattle?

Top 3 Americans >

48 poorest nations

Source: Newsweek 12-99

[Visit India … every 24 months.]

“ALL OF THESE ‘CONVERSATIONS’

TODAY ABOUT ‘THE WEB’ WILL

APPEAR SO BLOODY DAMN SILLY AND

PEDESTRIAN TEN … FIVE? … THREE?

… YEARS FROM NOW.”

— Tom Peters (11-99)

P.S.:

Read Ray Kurzweil’s The Age of Spiritual Machines: When

Computers Exceed Human

Intelligence

“Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”

AP/AOL/02-00

iSmell

from Digiscents*

*On sale 12-00 (AOL/03-03-00)

T.T.D.

How do you rate as a …

C.D.O.?

Notes Page

• So … what … exactly … are you doing to

DESTROY what you [and yours] are today? List every Project that aims to

ATTACK today’s “culture” and assumptions. Be specific!

Brand Inside

PSF 1:

Brand Org!

108 X 5

vs.

8 X 1*

* 540 vs. 8

And Now the Equivalent …

White Collar

Revolution!

ERP, ECM, Web, Etc.

IT’S THE GIANT SUCKING

SOUND

OF SLACK BEING

EXTRACTED FROM

THE GLOBAL ECONOMY!

“The coefficient of friction associated with the grunge of business is amazing!”

Michael Schrage

Cemex and FDX!

CCC Information

Services!

Swissair e>booking e>ticket e>check-in e>track e>info

And …

50M @ $20,000 = $1T*

*Michael Dertouzos, MIT, on India’s

“back office” outsourcing potential

[02-08-00/Delhi]

The Pincer 5

“Destructive” entrepreneurs/ Global

Competition

“White Collar Robots”

THE INTERNET!

[E.g.: GM + Ford + DaimlerChrysler]

Global Outsourcing

[E.g.: India, Mexico]

Speed!!

The Mother of All Predictions

The Internet

Destructive Competition

Speed

White Collar Robots

White Collar Outsourcing

T.T.D.

Discuss: Is my “90% in

10+ years” extreme?

Notes Page

• I admit that some say I’m over-the-top here. I honestly don’t think I am. Try and imagine your HR/Whatever Dept. fully automated with numerous tasks outsourced … to India or Ireland.

“ Assetless

Company”

J.B.

“Don’t own nothin’ if you can help it. If you can, rent your shoes.”

F.G.

RR on Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

The “&-!!+#$% in the middle”*

Jim Clark on Healtheon/WebMD

* ’twixt docs, patients and providers; $300B in waste (?); source: Michael Lewis,

The New New Thing

Hill Physicians Medical Group/

2,500 California docs

WAS: 200,000 claims per month

34 employees doing 150 per day

NOW: Healtheon/WebMD portal processes 3,500 claims in

45 minutes; 1/3 of claims via

Healtheon/WebMd now [after 1 year];

60% by year’s end

[ Incidentally …

CEO Jeff Arnold

Age: 30

First Start-up: Age 24]

SoftWatch (MS)

“Manage relationships across the healthcare continuum”/ Amir Kishon

Establish e-relationships with customers/retain customers/collect data

Patients record info + receive feedback/ Online access to nurses

Community with others with MS

Etc.

Source: Start-Up

“We want to be the air traffic controllers of electrons.”

Bob Nardelli,

GE Power Systems

T.T.D.

Does your vision involve a critical position in the industry’s

Spider’s Web?

Notes Page

• Try to depict your industry … or your department … with all its interconnections. E.g.: What if every task you perform became a “for profit” task in which you became an “industry expert”?

E.g.: As an HR Dept. in the utility industry, what if you started the premier dot.com industry Talent Bank?

TRUST*

*Now … more than ever!

PSF 1.0

Professional Service

Firm Conversion Kit /

Release 1.0

PSF 1.0

Department Head to …

Managing Partner,

HR [IS, etc.] Inc.

Why are there no books on how to create a “Cool, Rocking,

WOW-producing

Finance Department”?

Credo

“WORK

WORTH

PAYING FOR”

T.T.D.

Sooooo …

Is It?

Notes Page

• What is the “bottom line” – WORTH

PAYING FOR – for every project your unit

[or you] has going?

“support function” / “cost center” / “bureaucratic drag” or …

“Rock Stars of the ‘Age of

Talent’ ”

“Real” PSF …

– Think Inc. (Mindset = Step No.1!)

– Clients rule! / Engage Clients in deep dialog/ “Join us in an

Adventure” / Fire duds!

– Work = WOW Projects (100%!)

– Embrace the Politics of

Implementation!

– Practice serial monogamy!

– Master “the economics”! (WWPF!)

“Real” PSF …

– WE HELP PEOPLE!

– Co-habit with the Client!

– Create a Culture of Urgency!

– Love thy Support Staff!

– You need a Methodology! /

Obsess on R&D!

– BECOME A “CONNOISSEUR

OF TALENT”!

Real PSF …

WE OWN THIS PLACE!

THIS IS COOL STUFF!

WE ARE THE WORLD!

The “7Ps” of PSF 1.0

P rojects!

P assion!

P rovocation!

P artnership!

P olitics!

P rofessionalism!

P erformance!

T.T.D.

Use the prior slide as a checklist relative to every activity [project] your unit is working on.

C.I.O.

to

C.E.F.R.N.S.*

* C hief E vangelist F or

R eally N eat S tuff

T.T.D.

Compare : “Department

Head” versus

“Managing Partner,

Finance Inc.”

Notes Page

• See our book, the Professional Service

Firm50, re the differences between a traditional “Dept.” and a full-fledged

“PSF.” Our “The Work Matters” manifesto

– at tompeters.com – also covers this.

Seminar Y2K/Brand Inside

Message:

Distinct … or

Extinct!

Brand Inside

PSF 2:

Brand Work!

“Reward excellent failures. Punish mediocre successes.”

Phil Daniels, Sydney exec

But Does It Matter ????

“On time, on budget … who cares?” anon. seminar participant (4/99)

“You really got to me.

So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ”

CEO, F100 financial services company (10-98)

WOW Project Anatomy

I. Create!

II. Sell!

III. Implement!

IV. Exit!

I. Create!

Reframe!

THERE ARE NO “SMALL” PROJECTS!

Observe & Record!!

Head for the trenches!

You gotta love it!

Measure: WOW!, Beauty, Raving Fans,

Impact!

Build a no-baloney Business Plan

Create community. Now!

Obsess on … the End User. Now!

Reframers’ Rules:

Rule 1: Never accept an assignment as given!

Rule 2: You’re never so powerful as when you are “powerless”!

Rule 3: Every “small” project contains the entire enterprise

DNA!

T.T.D.

Examine that “small”/

“annoying” project you’re working on. Can it be re-cast as a WOW/ Culture Change

Project? What are the hidden assumptions about customers/ suppliers/ employees?

Notes Page

• I am adamant: Every project can be made into a “big deal” if your head is in the right place. So … now … COMPLETELY RE-

INVENT THAT “SMALL” PROJECT YOU

ARE WORKING ON! No bull! E.g.: What about a “Memorial Day Employee Picnic that signals a whole new attitude toward our staff”?

Measures

– WOW!

– Beauty!

– Raving Fans!

– Impact!

T.T.D.

IS IT

BEAUTIFUL?

Notes Page

• Think “beauty-in-a-business-processreengineeringproject.” Etc.

• NO BULL.

• Can you learn to use the word “beauty” between 9 and 5?

E.g.: WOW Scale

1. … Dull as dishwater

.

5. … Gets the job done

.

7. … “Good work!”

.

10. … A serious “Braggable”!

T.T.D.

MEASURE … NOW

… P-L-E-A-S-E!

Notes Page

• NO BALONEY:

THIS IS MY #1

GOAL FOR THE

WHOLE DAMN

SEMINAR

… THAT YOU [AND

YOURS] WILL MEASURE EVERY PROJECT

AGAINST MY FOUR KEY CRITERIA: WOW!,

BEAUTY, RAVING FANS, IMPACT.

• [P-L-E-A-S-E.]

Kaiser: 4.15.29

Liberty Ship

2 years

240 days

9 hours

4 days, 15 hours, 29 minutes

[ Just Say “No” to …

S-t-r-e-t-c-h]

WOW Project “Acid Test”

Can you explain it with zest to your 14-year-old?

“Every project we take on starts with a question:

How can we do what’s never been done before?”

Stuart Hornery, CEO, Lend Lease

II. Sell!

Master “The Pitch”!

Build Buzz. Consciously.

Network maniacally!

Preach to the choir!

Forget your enemies. [Surround and marginalize!]

Money kills!

SELL, SELL, SELL!

III. Implement!

Live, eat, sleep … Quick Prototype!

- Play!

- Keep on recruiting! (Sell!)

- Obsess on the End User Community!

(Sell!)

- Become a Milestone Maniac! / a Timeline

Tyrant! / a List Freak! / find Ms. Last 2%!

- Appoint a Marketing Director!

- Keep the WOW! front and center!

Culture of Prototyping

“Effective prototyping may be the most valuable core competence an innovative organization can hope to have.”

Michael Schrage

“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

“I view models and prototypes as the battleground for thoughts and behaviors.”

Michael Schrage

Think about It!?

Innovation = Reaction to the Prototype

Michael Schrage

T.T.D./ Prototyper’s Laws

Define a small, practical test of something on a page or less of text. Now.

Gather “found” materials … on the [very] cheap.

Find a/one partner“customer” who’ll provide a test site.

Set a very tight deadline of about 5 days for the next concrete step.

Conduct the test! Debrief A.S.A.P.

Set the next test date. Now. [No more than 5 days hence.]

Notes Page

• The idea is to establish a “rhythm of prototyping” that defines every project.

T.T.D./ Secret No. 1: Go horizontal: Find a (one!) “line” ally in “the Boonies”

Secret No. 2: “Powerless” allies are

Cool!

Secret No. 3: Passion Rules!

Secret No. 4: Become a Prototyping

Maniac!

Secret No. 5: Embrace Politics /

“Community Organizing”!

Notes Page

• Main Idea: YOU ARE NOT “POWERLESS.” Seek out allies in strange places … and get going! DO

NOT WASTE TIME “SELLING UP.”

• Attitude: You are the Gandhi/King of your

“mission.”

• So: IDENTIFY THE FOLKS YOU WANT TO PLAY

WITH RE THAT INCREDIBLY COOL IDEA YOU

HAVE!

K2K

IV. Exit!

“Sell out!” / Embrace “The Suits”!

Recruit a passionate Ms./Mr.

Follow-up!

Seed your freaks into the mainstream!

Celebrate!

Exit!

SOOOO … HOW MANY OF

YOUR COLLEAGUES ARE

“BACK HOME” AT WORK ON

NOBALONEY …

WOW* PROJECTS!

* WOW = Will be remembered fondly/ bragged about

5+ years from now

Epitaph from Hell …

Joe T. Jones

1942 - 2000

HE WOULDA DONE SOME

REALLY COOL STUFF

BUT …

HIS BOSS WOULDN’T LET HIM!

T.T.D.: Now!

– List all projects

– Carefully describe a “WOW Outcome” for you and the Client

– Score (!) all projects on WOW, Beauty,

Impact, Raving Fan-hood

– Pick one project with a high combined score

– Draft a one-page New Description that emphasizes WOW, Beauty, etc.

– Circulate and edit … for three days

– Reduce to 5 bullet points

Notes Page

• DO IT!

• NOW!

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.

Michelangelo

Characteristics of the “Also Rans”

“minimize risk”

“respect the chain of command”

“support the boss”

“make budget”

Source: Fortune on “most admired

global corporations” (10/26/98)

[We are not trying to “WOW you up.”

We think you are/have WOW.

We are trying to give you permission to be WOW.]

Seminar Y2K

MESSAGE: THE

WORK MATTERS!*

*Sorry, Scott!

Seminar Y2K/Brand Inside

Message:

Distinct … or

Extinct!

1) Turn ignition key.

2) Shift into drive.

3) Press foot firmly on the throat of mediocrity.

Source: Mercedes ad

Brand Inside

PSF 3:

Brand You!

DISTINCT … OR EXTINCT!

If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

“If one quarter can’t make the journey, that’s the way it has to be.”

Carly Fiorina (1-00/Forbes)

Personal “Brand Equity” Evaluation

– I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].

– My current Project is challenging me …

– New things I’ve learned in the last 90 days include …

– My public “recognition program” consists of …

– Additions to my Rolodex in the last 90 days include …

– My resume is discernibly different from last year’s at this time …

T.T.D./Personal “Brand Equity”

– I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].

– My current Project is challenging me …

– New things I’ve learned in the last 90 days include …

– My public “recognition program” consists of …

– Additions to my Rolodex in the last 90 days include …

– My resume is discernibly different from last year’s at this time …

Notes Page

• Soooooo … perform a PBE evaluation.

VERY CAREFULLY! Do alone. With spouse or best pal. With an informal group of colleagues. As boss: Make this a regular, major exercise; perhaps include [or make centerpiece of] the formal HR evaluation scheme. My categories are not sacrosanct, merely suggestive. [Hint: This process is proven!]

They “Get it”?!

– stone mason

– electrician

– plumber

– tiler

– cabinet maker

– contractor

– blacksmith

– well driller

– blaster

– sheep shearer

– etc.

Icon Woman …

– Totally turned on by her work!

– “It” matters / a WOW Project!

– “It” is … COOL!

– “It” is … BEAUTIFUL!

– She is … in your face!

– She is an … adventurer!

– She is … CEO of her own life!

Icon Woman …

-

She is … at least … a little funky!

– Her curiosity is … insatiable!

– She thinks screwups are … as normal as breathing!

– She hangs out with some … seriously rad Dudes!

– She is not God. She is not Bionic

Woman. She is … determined to make a damned difference!

“Well-behaved women rarely make history.”

— Anita Borg,

Institute for Women and Technology

Icon Woman Meets the Web …

– submits resume on the Web

– recruited on the Web

– hired on the Web

– trained on the Web

– creates and conducts projects with virtual teams on the Web

– manages project and client follow-up on the Web

– manages career/reputation-building on the Web

“The Brand Called URL”/

Nathan Shedroff, Vivid Studios

“24 X 7 storefront devoted exclusively to

The Brand Called You.”

T.T.D./Soooo…

How’s your

Web site?

Notes Page

• So … how is it? MY 18-YEAR-OLD SON

HAS ONE! It’s fly-phat.

R.D.A.

Rate: 15%?, 25%?

Therefore: Formal “Investment

Strategy”/

R.I.P.

R.I.P.

10 … Major job change [new area of concentration]; major offsite educational investment; extensive sabbatical [oddball learning experience of > 2 months]; exceptional community project

[presidency of fundraising drive, run for school board].

R.I.P.

5 ...

Extensive course work in oddball area of passionate interest; major offthe-job activity [community involvement, learn to play the cello, study Chinese].

1 … Company training, as directed.

T.T.D./Your R.I.P.

IS IT … FORMAL?

IS IT ... WOW!?

Notes Page

• We think “R.I.P.s” are imperative! So … please take these two questions seriously and literally!

T.T.D./R.I.P.

Use by yourself.

Use with your mates.

Use [quantitatively?] as a measure of departmental/ P.S.F. renewal.

Use in formal eval process.

Notes Page

• The whole idea is to make “R.I.P.s” a/the centerpiece – formally – of measuring unit

“freshness.” E.g.: SCORE EVERYONE’S

“R.I.P.” ON ITS BOLDNESS/WOW.

Training Y2K

Anytime, anywhere!

Whatever!

Concocted by the employee

[“Training Account”]

Self-control =

Engagement =

Effectiveness*

* “How Pilots Fly the Plane Varies a Lot from Airline to Airline” (WSJ/031400);

PD on mbo

Tapping into Intrinsic Motivation

“If you, David Weinberger, want to make your customers happy, it’s more to demonstrate that you’re a capable dude – not because you’re concerned for your client’s mental state.” from The Cluetrain Manifesto

“The pursuit of working free is not the pursuit of freedom from responsibility or from the demands of bosses, companies or customers. It is about choosing to work in a way that is truly responsible to yourself – a way that is in synch with your own choices, values and concerns.”

Tim Gallwey,

The Inner Game of Work

“Everything can be taken from man but one thing: the last of human freedoms to choose one’s own attitude in any set of circumstances, to choose one’s own way.”

Victor Frankl, Auschwitz survivor

T.T.D./So….

HOW DO WE TURN THIS

INTO A PLACE WHERE

PEOPLE WANT TO FEEL

GREAT ABOUT THEIR OWN

PERFORMANCE?

Notes Page

• If our Cluetrain Manifesto pals are right, a lot of the “do or die for the customer” stuff is pure hooey. What we need is folks out to improve – daily! – on their Personal Bests. WHAT CAN WE

DO TO FOSTER THAT? Hint: this rings true to me as a seminar giver in 2000 and a waiter back in the 1960s. A “great night” had lots more to do with “satisfying me” than “serving the customer.”

H.R. to H.E.D. ???

H uman

E nablement

D epartment

“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”

Seminar Y2K/Brand Inside

Message:

Distinct … or

Extinct!

When you love what you do, you’re alive.

jobs.com

“I don’t think there’s anything worse than being ordinary.”

American Beauty

T.T.D./Assignment

Construct a 1/8-page or

1/4-page ad for

Brand You … for the

Yellow Pages

Notes Page

• THIS IS A BIG

DEAL. TAKE IT

SERIOUSLY

. [“Yellow

Pages ads” are the centerpiece of our formal Brand You training programs.]

[

T.T.D.: How About It?

Replace your current evaluation process with

Yellow Pages ads.]

Notes Page

• NO BULL! Some of our Clients have gone this far. And report stunning results. If you can’t do this formally, try it informally.

“You are the storyteller of your own life, and you can create your own legend or not.”

Isabel Allende

Bill Parcells’ World/

Brand You World!

BLAME NOBODY!

EXPECT NOTHING!

DO SOMETHING!

NY Post (9/99)

T.T.D./Cluetrain Manifesto

Relax!

Have a sense of humor!

Find your voice and use it!

Tell the truth!

Don’t panic!

Enjoy yourself!

Be Brave!

Be curious!

Play more!

Dream always!

Listen up!

Rap on!

Notes Page

• This is one tough standard to hold ourselves to! Perhaps start by putting this on a 5-inch x 7inch card … and referring to it several times a day.

GET IT?

The Character of the Web, per The Cluetrain Manifesto

Hyperlinked

Decentralized

Hypertime

Open, direct access

Rich data

Broken [no one owns it or controls it]

Borderless

Read the Book!

The Cluetrain

Manifesto

“E-business is the final nail in the coffin for bureaucracy at

GE.”

Jack Welch/

GE Annual Report 2000

[ Words to Live By …

“Hierarchy is an organization with its face toward the CEO and its ass toward the customer.”

Kjell Nordstrom and Jonas Ridderstrale,

Funky Business]

Death to Towerism!

EVP/S.O.U.B.

Member,

S.C.H.S. 2000

S.O.U.B.:

Stomp Out

Unnecessary Bullshit

S.C.H.S.:

Sacred Cow

HitSquad2000

Brand Inside

PSF 4:

Brand Talent!

Issue Y2K

The Great War for Talent!

Alan Kay on

PARC’s Bob Taylor

“He was a connoisseur of talent.”

T.T.D./

ARE YOU?

Notes Page

• There’s perhaps no more difficult “test”:

AM I A NO-BALONEY CONNOISSEUR OF

TALENT? Use a quantitative measure.

A Connoisseur of Talent …

– Spends time on Talent!

– Becomes a student of Talent!

– Puts Talent “on the agenda”!

– Practices D.I.Y.

– Uses Plain English! (If you want “sunny” … ask for “sunny”!)

– Creates Workspaces that foster energy, entrepreneurship and creativity!

– Recruits from oddball places! /

Recruits Oddballs!

“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.

(Find the

One Ton Cookie Man!)

A Connoisseur of Talent …

– Recruits M.I. (Gardner: Logical-mathematical, linguistic, artistic, musical, bodily-kinesthetic, intrapersonal-self, interpersonal-others)

– Recruits arts!

– Becomes de facto C.D.O. (Chief Diversity

Officer)

– Turns the pay scale upside down! / Pays Talent!

– Rewards & Promotes all on Talent

Development Skills!

– Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

“Every school I visited was participating in the systematic suppression of creative genius.”

“From cradle to grave the pressure is on: BE NORMAL !”

Gordon MacKenzie

“Where do good new ideas come from? ...

That’s simple! From differences.

Creativity comes from unlikely juxtapositions. The best way to maximize differences is to mix ages, cultures and disciplines.”

Nicholas Negroponte

T.T.D.

Use the two Connoisseur of

Talent slides as a guide for creating a Formal Talent

Development Plan

Notes Page

• Literally use the items on the two slides as a formal check list to measure yourself

[quantitatively] against.

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 10 th 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 10 th Grade

History Book

– Forgiveness > Permission

– Bone honest!

– Flawed as the dickens!

– “In touch” with their followers’ aspirations

– Damn good at what they do!

Just Say “No” to “Grout”!

Participant : “Don’t you need

‘grout’ between the tiles?”

TP:

“No!”

[med staff,

NFL Special Teams,waiters,

PFCs, cymbals player, bit parts, waiters]

TP’s Ideal Job:

Head of Housekeeping!

“Conformity is the enemy of freedom and the jailer of growth.”

J.F.K.

“The boundaries for acceptable weirdness have dramatically expanded.”

Michael Schrage

Yes!

Director of Bringing in the Really Cool People

All You Need to Know?

Chief Evangelist For Really

Neat Stuff

Director Of Bringing In The

Really Cool People

T.T.D.

STEAL THESE

TWO JOB

TITLES!

Talent = Brand

Brand Outside

=

Brand Inside

T.T.D.

Construct a formal

“Great War for Talent

Strategy” for your unit!

Notes Page

• Key word: FORMAL!

Seminar Y2K/Brand Inside

Message:

Distinct … or

Extinct!

Brand Outside

Context:

No

“Commodities”!

In the Beginning …

“The audit has become a commodity.”

Big 5 audit partner to TP

Quality Not Enough!

“Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.”

J.D. Power

Quality Not Enough!

“While everything may be better, it is also increasingly the same.”

Paul Goldberger on retail, “The Sameness of Things,” The New York Times

What’s Special?

“Customers will try ‘low cost providers’ because the Majors have not given them any clear reason not to.”

Leading Insurance Industry

Analyst (10-98)

“We make over three new product announcements a day. Can you remember them?

Our customers can’t!”

Carly Fiorina

6 Sigma or

“Jazzy Offerings”?

WSJ/2-9-00: Nokia extends market share lead [22.5% in

’98 to 26.9% in ’99] over

Motorola [19.5% to 16.9%]

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.”

Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Driver: In Search of Excelllence (’82) to The Circle of Innovation (’97)

A proliferation of

[good/niche] products and

[good/niche] competitors

Changing tastes and preferences challenge the leaders [from GM to

P&G to Pfizer to Nations Bank to

IBM to HP to Coca Cola]

[ E.g. …

Rapidly aging population!

Health fanaticism!

Environmental concerns!

Freaky independence!

Women rule! ]

The “10X/10X

Phenomenon”

10 Times Better/

10 Times Less Different

TP’s Campaign Y2K

Just say [shout]

“No!” to the “inevitable commoditization” of anything.

“When we did it ‘right’ it was still pretty ordinary.”

Barry Gibbons on

“Nightmare No. 1”

Pretzel Crumb-lessness Plus …

“The Ritz Carlton Experience enlivens the senses, instills well-being and fulfills even the unexpressed wishes and needs of the guest.” from the Ritz Carlton Credo

“We want to create

waves of lust

for our product.”

Andy Grove (on the Pentium

Processor)

“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.”

Jerry Garcia

Lust Hierarchy

Satisfy … Conform to

Requirements … Exceed

Expectations …

Delight! … WOW! … Lust! …

ONLY ONES WHO DO WHAT

WE DO!

Aarrgh!

“Quality is conformance to requirements, not goodness.”

Phil Crosby

What Jerry Should

Have Said???

“You do not merely want to be the best of the best, you want to be considered in conformance with requirements.”

Nirvana!

- Nordstrom

- Four Seasons

- Adirondack Guide Boat

- OXO

- Ziplocs

Why?

Cool!/Surprising!

Reliable!

Friendly!/Comfortable!

Aesthetically pleasing!

T.T.D.

And your favorites?

Why?

(Pay attention to the flavor of the words you use)

Translation to your/

“finance world,” etc.?

Notes Page

• Think about the words you use to describe “stuff” you really LOVE. Do those terms apply to your unit’s products and services? If you talk about a

“compelling” movie or novel or theatrical performance, why not a “compelling business process”?

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy

1

:

Lead the Customer!

“The customer is a rear view mirror , not a guide to the future.”

George Colony, Forrester Research

“If you worship at the throne of the voice of the customer, you’ll get only incremental advances .”

Joseph Morone, President, Bentley College

Early Customer Rejection

Post-Its [12 years!]

Chrysler Minivans

VCRs

Fax machines

FedEx

CNN

Heart-assist pumps

Etc.

Source: Fortune

Good = Bad/ 1 of 30,000

“We are crazy. We should do something when people say it is

‘crazy.’ If people say something is ‘good’, it means someone else is already doing it.”

Hajime Mitarai, Canon

“Wealth in this new regime flows directly from innovation, not optimization. That is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”

Kevin Kelly, New Rules for the New Economy

“Lead” customers!

K2K redux!

T.T.D.: Do You K2K?

Are you working with

[numerous] weird, far out customers? [As opposed to “biggest” customers?]

Notes Page

• Trust me! You will be as Cool as your

Coolest Clients. Cool Clients co-invent the future with us. Soooo … WHAT’S YOUR

COOL CLIENT PORTFOLIO LOOK LIKE?

[Hint: “Biggest” are rarely “coolest.”]

Benchmarking, Perils of …

“The best swordsman in the world doesn’t need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.”

Mark Twain

Amen!

The Age of the

Never Satisfied

Customer”

Regis McKenna

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy

2

:

Master

E-Commerce!

$35,000,000. = ???

Dell’s Web sales … daily

2X = 100 days

(Internet traffic)

2X = 9 months

(network capacity)

Source: Red Herring (1-00)

I-24 to 1-28: BizRate.com Online

Shopping Index [Consumer Goods]

52 Weeks:

+622%

Source: The Industry Standard/02-00

[AOL delivers more mail than the USPS!

Source: Fortune 2-00]

T.T.D.:

Study!!

Read:

Business 2.0

Red Herring

Wired

The Industry Standard

Notes Page

• YOU MUST [M-U-S-T] BECOME AN AVID

INTERNET STUDENT! PERIOD! SO …

HOWYADOING?

Tomorrow Today: Cisco!

$7B of $10B

Save $500M

(service and tech support)

C.Sat

e

>> C.Sat H

Customer Engineer

Chat Rooms

($1B?)

Cherry Picking

Vertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services

(database, catalogs, forums, industry job bank, etc.)

T.T.D.: Message!

COMMUNITY!/

COMMUNITY

SERVICES!

Notes Page

• Web Secret No.1: COMMUNITY – as in,

User Community – RULES! So: How do your online Community Development

Activities rate?

B2B

1999 – 2004:

50X

2004: $7.4

T

Source: GartnerGroup

(per Reuters 1-26-00)

GM/Ford/DaimlerChrysler (02-27)

Auto parts supply “Co.”

$240B (+$500B)

I.P.O.

B2B = No.1

CarStation (auto-body shops),

ChemConnect (chemicals),

Collabria (commercial printing),

DigitalThink (corporate training),

E-Steel (steel), Medibuy (medical supplies), Portera (knowledge workers), Etc., Etc., Etc., Etc.

Consumer [Health Care] Sovereignty!*

E.g.:

“Empowered consumers influenced by medical advertising and educated by information on the Internet are driving demand for new vision correction options.”

Start Up (10-99)

* “Take your White Coat and … ”

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

Welcome to

D.I.Y. Nation!

“Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.”

Ray Lane, Oracle

Shop in your

Underwear

Source: SM’d logo for www.ae.com

ae = American Eagle Outfitters

Psych 101:

Strongest Force on Earth?

My need to be in

perceived control of my universe!

Anne Busquet/ American Express

Not : “Age of the Internet”

Is:

“Age of Customer

Control”

“IT enables total transparency.

People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee or citizen is dead.”

Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Patricia Seybold’s “Basics”:

The E-Customer Bill of Rights

Don’t waste my time!

Remember who I am!

Make it easy for me to order and procure service!

Customize your products and services for me!

Source: customers.com

T.T.D.: Message!

THE

CUSTOMER IS

IN CONTROL!

Notes Page

• Do you Joyfully “allow” the Customer to lead you around by the nose? Is this truly his/her site? Her/his “home”?

“Welcome back, Tommy!”

[ Cases: Customers.com

American Airlines

National Semiconductor

Hertz

Amazon.com

Babson College

National Science Foundation

Bell Atlantic

Wells Fargo

Cisco Systems

Dell

Etc.]

“In the network economy, the

Website becomes the company’s primary interface to the customer.

The user interface becomes the marketing materials, store front, store interior, sales staff and postsales support all rolled into one.”

Jakob Nielsen,

Designing Web Usability

Read This. No: INGEST This!

Jakob Nielsen

Designing Web Usability:

The Practice of Simplicity*

*www.useit.com

“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their purchase!

T.T.D.: Message!

SIMPLICITY!

Notes Page

• READ JAKOB NIELSEN’S BOOK! Hold your site to the Exacting Nielsen

Standard! [Be ruthless … on yourself.]

“The Net hasn’t lived up to its hype. It’s a distant, cold, alien, threatening world called

‘cyberspace.’ The challenge is to make the Net into something intimate, warm, friendly, useful, personal.”

Carly Fiorina, CEO, HP @ Comdex ’99

T.T.D.: Message!

Friendliness!

Notes Page

• Is our Site – including B2B sites – “a place called home”?

“Even if executives of established businesses grasp the impact of new technologies … they still face a massive competitive disadvantage precisely because they are incumbents. … They do complex financial calculations and get bogged down in internal political debates. Insurgents have no such inhibitions.”

Philip Evans & Thomas Wurster,

Blown to Bits

“Where does the Internet rank in priority?

It’s No. 1, 2, 3, and 4.”

Jack Welch

Change … Or Die!

“Most of the brick and mortars look at the

Internet as an addon business … until they get a major scare. Then they either change or die. … You have to put all your heart and soul in that direction, the way

Charles Schwab and Dell did.”

Flip Filipowski, divine interVentures (Red

Herring)

There are 2 Kinds of …

Defense* vs.

Offense**

*Fend off upstarts.

** Reinvent our marketspace!

The Way “They” Talk!

“I have this chance for … changing the world.”

Marco Boerries, Sun, re StarOffice

(Business 2.0, 2-00)

T.T.D.

Most important Y2K

question: Are you & yours “dealing with” the

Web … or “embracing it” as “central to our being”?

Notes Page

• SPEND A

LOT

OF TIME ON THIS

“TTD”!

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy

3

:

Women Rule!

?????????

Home Furnishings … 94%

Vacations … 92%

Houses … 91%

Bank Account … 89%

Health Care … 75%

Etc.

48% working wives > 50%

80% checks

61% bills

53% stock (mutual fund boom)

43% > $500K

95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education.

Source: Business Week (11-99)

$3.3T + $1.5T = $4.8T*

* Larger than Japan!

Most Under-reported story!

9M*/27.5M(1 of 4)/

$3.6

T

[> Germany]

* 400K in ’72

Sources: NFWBO, Cognetics, Business Wire (03.06.00)

New golfers … 37%

Basketball … 13.5M

1 in 27 (’70) … 1 in 3 (’96)

1874?

1874 … Jock Strap

1977 … Jogbra

1977 ... 25K

1996 … 42 M

Yeow!

1970 … 1%

2000 …

50%

OPPORTUNITY

NO.

1!*

[* No shit!]

T.T.D.: Study!

Does anybody in your industry do “it” right?

Brilliantly?

[If so … how?]

Notes Page

• STUDY!

[Damn it!]

Carol Gilligan/ In a Different Voice

Men: Get away from authority, family

Women: Connect

Men: Self-oriented

Women: Other-oriented

Men: Rights

Women: Responsibilities

FemaleThink/ Popcorn

“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

Women and Financial Advisors

Women want … a plan, to be listened to, to be taken seriously , to read about it, to think about it.

Women do not want … an in-your-face sales pitch

Source: Kathleen Boyle, Wheat Boyle Butcher Singer

Women and Healthcare

Women are … more dissatisfied, frustrated by the way they are treated and spoken down to by physicians, seek more information, are more pressed for time … and make 75% of health care decisions and control 2/3 of health care

$$$$ [and constitute 2/3 of health care employees].

Source: Patricia Braus, Marketing Healthcare to Women

Marketing to Women: Help Them

Save Time!

80% … work

86% … cook

58% … run errands with kids

38% … take child to school

21% … go to the gym

21% … take outside classes

How Many Gigs You Got, Man?

“Hard to believe … Different criteria”

“Every research study we’ve done indicates that women really care about the relationship with their vendor.”

Robin Sternbergh/ IBM

T.T.D.

Do you [clearly] understand the difference between men’s and women’s purchasing habits?

Notes Page

• Again:

STUDY!

• [It took me years to get a handle on “this stuff.”]

Not!!

“Year of the

Woman”

Enterprise Reinvention!

Recruiting

Hiring/Rewarding/ Promoting

Structure

Processes

Measurement

Strategy

Culture

Vision

Leadership

THE BRAND ITSELF!

And Now …

Kathleen

McGrath!

“What kind of car does

Mommy want?”

“I didn’t know

[company] were giving company cars to secretaries.”

Source: UK financial services CEO,

12/99

Not a Morality Play!

“It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do.

We are marketing to women entrepreneurs because it is a huge opportunity.”

Cherie Piebes

T.T.D.

What would it take to get you & yours to “Go For

It”?

First steps?

Notes Page

• What could you do – in the next 30 days – to begin to test these ideas? Define 10 actions!

Speaking of

Enormous

[Missed] [Huge]

Opportunities ...

74/55

“At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generation’s life-span migration, you can see the future.”

Ken Dychtwald, Age Wave

Aging/“Elderly”

2X growth rate

$$$$$$$$$$$$

“I’m in charge!”

“Experiences” vs. Products

Design revolution!

Good source: Ken Dychtwald,

Age Wave

Self Control Redux!

“There is already telling evidence that these new sex drugs may well do for medicine what porn did for the

Internet: constitute the killer app that reshapes the industry in an age of patient choice and turbo consumerism.”

Jack Hitt, “The Second Sexual Revolution,” The

New York Times Magazine (2-20-00)

Priorities: Aging/“Elderly”

Experiences …

Convenience … Comfort

… Access …

Respect!

“Any student who combines an expertise in gerontology with, say, an

M.B.A. or law degree will have a license to print money.”

Newsweek

T.T.D.

SOOOOO … WHERE

ARE YOU ON THIS

ONE???

[REMEMBER: 74M!]

Notes Page

• Listen up:

THIS IS

ANOTHER

BIGGIE!

Think about it. Discuss it. Collect data. [Become a “student.”]

Experiment.

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy

4

:

Design Rules!

And Tomorrow …

“Fifteen years ago companies competed on price. Now It’s quality.

Tomorrow it’s design.”

Robert Hayes

All Equal Except

“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.

Design is the only thing that differentiates one product from another in the marketplace.”

Norio Ohga

“Design is treated like a religion at BMW.”

Fortune (10/98)

Drop-dead Charm!

“The new Beetle

fails at most categories. The only thing it doesn’t fail in is dropdead charm.”

Jerry Hirshberg, Nissan Design

International

Object of Desire!

“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in point: the iMac.

Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.”

Katherine McCoy, Michael McCoy, Illinois Institute of

Technology

Design as Soul

“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.

Design is the fundamental soul of a manmade creation.”

Steve Jobs

Check Out the Language:

“Tomorrow it’s design …”

“Design is the only thing …”

“Design is … religion ...”

“Drop-dead charm …”

“Object of desire …”

“Fundamental soul …”

T.T.D.

Where do you stand on design?

[1 = Who, me? 10 =

Preoccupation.]

Where do you stand on

design-as-soul?

Notes Page

• I’m at a bit of a loss here. I DON’T KNOW

HOW TO “MAKE YOU” “GET” THIS. I think it is of the Utmost Importance. I want you

– at least – to become “aware” of the

Power of Great Design. And … I do

[fervently] believe that Great-Design-Is-

Soul.

The I.D. [International Design] Forty*

Airstream … Alfred A. Knopf … Apple

Computer … Amazon.com

Bloomberg … Caterpillar … CNN …

Disney … FedEx … Gillette … IBM …

Martha Stewart … New Balance …

Nickelodeon … Patagonia … The New

York Yankees … 3M … Etc.

* List No. 1, 1999

Unconventional

[Design] Messages

Not about ... “Lumpy Objects”!

Not about ... $79,000 objects

One-sixth Second per Item!

“During the 30 minutes you spend on an average trip to the supermarket, about 30,000 products vie to win your attention and ultimately to make you believe in their promise.”

Thomas Hine, The Total Package

[ Design Moments!

Shopping cart =

2X heavy items

Source: Wall Street Journal (11-24-99) ]

“Car designers need to create a story . Every car provides an opportunity to create an adventure .

“The Prowler makes you smile . Why?

Because it’s focused . It has a plot , a reason for being, a passion .”

Freeman Thomas, co-designer VW Beetle; designer

Audi TT

Hmmmm(?): “Only” Words …

Story

Adventure

Smile

Focus

Plot

Passion

T.T.D./Message:

Services are Not Intangible!

You “give off” hundreds of design cues … daily!

YOU ARE A DESIGNER!

Notes Page

• List 100 [!] “design cues” that you give off! [Okay, start with 25.]

Graceful language!

Susan Sargent Designs:

PLEASE COMPLAIN!

Thanks for your order!

We dearly want everything to go p-e-r-f-e-c-t-l-y!

If the order was late. Or wrong.

Or if any of the goods are damaged in the slightest.

Or if you’re just having a lousy day and want to unload on someone …

Call our Customer Care Hotline!

T.T.D./“Beauty Contest!”

1. Pick one form/ document: invoice, airbill, sick leave policy, returns claim form.

2. Rate it on a 1 to 10 scale

(1 = Awful; 10 = Scintillating) on three dimensions: Beauty, Grace, Clarity .

3. Repeat … every 15 days.

Notes Page

• DO THIS! USE MY TERMS! [Beauty …

Grace … Clarity.] Be quantitative.

[PLEASE.]

Design =

SIMPLICITY … HONESTY

… ACCESSIBILITY …

ENJOYMENT

Jonathan Ive (iMac)

Design =

“There are three basic principles behind any welldesigned product: truth, humanity, and simplicity.”

Sohrab Vossoughi,

Ziba Design

Words (Again!)

Dropdead Charm … Object of

Desire … Truth … Humanity …

Simplicity … Focus … Honesty

… Accessibility … Enjoyment

… Story … Adventure … Plot …

Passion

T.T.D.: Campaign Y2K!

Plain, energetic, sparkling

English!

Notes Page

• Spend … a lot … of time talking about this. MAKE IT YOUR EVERYDAY

STANDARD FOR …

EVERYTHING

… THAT

EMERGES FROM YOU/YOUR UNIT.

T.T.D./Design “Awareness”!

STEP No. 1:

NOTEBOOK!

[Start recording the awesome and the awful.]

Notes Page

• THIS IS MY “SECRET.” I am not “artistic.”

But … I did teach myself to be …

CONSTANTLY AWARE. The Key: My

[simple] notebook! [I’VE NOW BEEN

“RECORDING” FOR ALMOST TEN

YEARS!]

T.T.D./

Huge

Opportunities

[That Damn Few Are Pursuing!]

Women!

The rapidly aging population!

Design!

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

Strategy

5

:

It’s the Experience!

“Experiences are as distinct from services as services are from goods.”

Joseph Pine & James Gilmore, The

Experience Economy: Work Is 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

Safe, On Time and …

“We defined personality as a market niche. We seek to amuse, to surprise, to entertain.”

Herb Kelleher, Main Man,

LUV Airlines

Experience: “Rebel Lifestyle!”

“What we sell is the ability for a

43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”

Harley exec, quoted in Results-based

Leadership

Mantra: “Any good can be ing

ed” the driv ing experience the pump ing experience the sitt ing experience the read ing experience the wash ing experience the cook ing experience

Joseph Pine & James Gilmore, The Experience

Economy: Work Is Theatre & Every Business a Stage

“This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience.”

Carly Fiorina, HP @ Comdex ’99

“What’s the plot?”

Freeman Thomas, designer

T.T.D.

WHAT’S THE

[your]

PLOT?

Notes Page

• WHAT IS YOUR STORY? [Be specific!]

Message: This applies to every [Finance] project!

T.T.D.

Carefully examine/think through every aspect of

“the experience of us.”*

*This holds for the Finance Dept. as well as the corporation’s “products”

Notes Page

• This demands a lot of care! THINK OF

YOURSELF AS A DRAMATIST, A

DIRECTOR. THINK ABOUT “THE WAY WE

COME ACROSS.” Be … ridiculously … specific! [God is in the Details.]

[ “Take Home Value”

Road Warriors: Cast Off Your Blands/

Free Your Taste Buds

Tabasco Sauce

Dijon Mustard

Balsamic Vinegar ]

AMA Riff

Are You Fighting Yesterday’s War?

Docs don’t know it all.

There are a lotta bad docs.

There are a lotta bad medical decisions.

“Hospitals” kill far too many people.

(Bad decisions, bad execution.)

Systemic waste is stratospheric. (Still.)

Patients are getting (much) smarter.

Patients have had it with HMOs. (And Docs with the

“white-coat syndrome.”)

You are not smarter than I am. (I am your partner.)

You are not busier than I am. (!!!!!)

Patients want more data.

(And can readily get it.)

Boomers will control their lives. Period.

Medicine is about to be overwhelmed with a tsunami!

“Is it good medicine?”

WHO

KNOWS??!!*

* “Answer” for Slicing Docs = Slice!

Do you believe everything I say?

IF YOU [TOTALLY]

TRUST YOUR LAWYER/

MANAGEMENT

ADVISOR/ DOCTOR …

YOU ARE … A

SIMPLETON.

1965 : “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.”

YES, NURSE.

ME GOOD PUPPY DOG.

1995 : “HMO will take care of you.”

BULLSHIT.

2005 : “I will take care of me. I’d like your expert help.”

P.S.: THE VIAGRA [ETC.] I ORDERED

ON LINE IS GREAT.

Dr. Peabody

Dr. Bill[ingsly]

Dr. Hahn

Dick Bartlett

Rich Lanzerotti

Mark Novotny

Patient-centric* Health Care

Wellness

(Fix to prevent.)

Partnership (“Tour guide” model.)

RESPECT!

(Mutual.)

WOMEN RULE!

*Not: HMO-centric, Employer-centric,

Insurer-centric, Doc-centric

AMA: Push

“Patient

Partnership”

Model????

Context : “No” to “inevitable commoditization”

S1: Lead the Customer!

S2: Master E-Commerce!

S3: Women Rule!

(and the elderly)

S4: Design Rules!

(too)

S5 : It’s the Experience!

Bottom Line: Glorious Age of the

BRAND!

Brand Outside

BRAND

POWER!

Brand It!

Now, More Than Ever!

“The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.”

Gillian Law and Nick Grant,

Management [New Zealand]

“What Matters to Online Buyers”*

#1: Product brand

#2: Retailer brand

*Source: Business 2.0

T.T.D.

How do you [& yours] define

“brand”?

Notes Page

• It sounds Elementary. It’s not! DISCUSS:

WHAT IS A

BRAND

[THAT MATTERS]?

Brand Defined

Distinction

Excellence

Emotional “Signature”

Trustworthiness

Consistency

Shorthand

No Room for Brands?

Nike

Saturn

CNN

America Online

Charles Schwab

Starbucks

The Gap

Intel

Etc.

T.T.D.

HAVE YOU GENUINELY

EXAMINED THE ENORMITY

OF “BRAND POWER”?

ARE YOU A NO-BALONEY

STUDENT OF BRANDING?

Notes Page

• As usual:

STUDENT-

HOOD

MATTERS!

Brand = Trust!

“Most buyers do not have a clue whether anybody else makes a better microprocessor, but ‘Intel Inside’ has become a ‘trust mark’ - a trademark that consumers put their faith in.”

The Economist

“Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch.

Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the

Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ”

Barry Gibbons

“Salt is salt is salt. Right? Not when it comes in a blue box with a picture of a little girl carrying an umbrella. Morton

International continues to dominate the

U.S. salt market even though it charges more for a product that is demonstrably the same as many other products on the shelf.”

Tom Asaker, Humanfactor Marketing

T.T.D./Calling the

Corporate Shrink!

“Organizational

Psychotherapy”/

WHO WE ARE!

Notes Page

• This is The Big Enchilada:

SPEND

– lotsa –

TIME

ON IT!

Scott Bedbury/ Nike, Starbucks

“A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.

“A Great Brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.”

Brand = Special =

Passion =

Connection =

Caring*

* (Way) beyond “market research”

T.T.D./Assignment Y2K

Write an essay on

“Who we are.”*

* Jesper Kunde, Corporate Religion

Notes Page

• DO IT!

500 words.

• [And then:

10 words.]

“How can I know what I think till I see what I say”*

Exercise : Write copy for a bookmark! (Etc.)

*Graham Wallas, The Art of Thought

Rules of Radical Marketing

Love + Respect Your Customers!

Just Say No … to Market Research!

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)

“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think.”

Jesper Kunde, Corporate Religion

“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you find out who you are as a company.”

Jesper Kunde, Corporate Religion

Brand Outside

=

Brand Inside

Brand Leadership

Lead Out Loud!

Brand Leadership!

“A key – perhaps the key – to leadership is the effective communication of a story.”

Howard Gardner

Leading Minds: An Anatomy of Leadership

“Leadership is a performance.

You have to be conscious of your behavior, because everybody else is.”

Carly Fiorina

Brand Leadership:

ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander

T.T.D.

Evaluate yourself

[unsparingly] as an enthusiastic

“performing artist”/

“story teller”!*

*In today’s dealings. [Use outside assistance?]

Notes Page

• You don’t have to be Bill Cosby. You do have to understand that … ALL LEADERS

ARE

ON-STAGE

… ALL THE

TIME! [And: “Leader” does NOT mean

“boss.” It means anyone trying to “Get

Cool Stuff Done.”]

“You must care!”

Melvin Zais

T.T.D.

“You must care!”

Melvin Zais

Paradox No. 1, Circa 2000

TRUST*

*Now … more than ever!

“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

“We are in a brawl with no rules!”

Paul Allaire

Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF

AT RISK!

T.T.D./Follow Ann Richards’ Dogma

Show up!

Know your message!

PUT YOURSELF AT

RISK!

Notes Page

• Sooooooo ……

???

“If you ask me what I have come to do in this world, I who am an artist, I will reply, I am here to live my life out loud.”

Emile Zola

“I’d rather regret the things I have done than the things I have not.”

Lucille Ball

How sweet it is

!

“If things seem under control, you’re just not going fast enough.”

Mario Andretti

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