Tom Peters Seminar2001
Rollercoaster Days:
Learning to …
Rock & Roll!
Boise 06.08.01
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.
Lavender text in this file is a link.
“There will be more
confusion in the business
world in the next decade
than in any decade in history.
And the current pace of change
will only accelerate.”
Steve Case
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger
between humans and computers that is so
rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
“We are in a
brawl with no
rules.”
Paul Allaire
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!)
“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
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)
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!
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
“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
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]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
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
“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
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
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.
8 X 1*
* 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?
“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.
Cisco, Dell =
Brand-owning companies
who sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism [e.g.: Cisco owns 2 of 38
assembly plants]
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
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.
“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!
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 … Etc. … Etc.
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.”
ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles,
from 21 mfg. Sites to 6,000 NA dealers)
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR:A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
Centers of
Excellence (A Few) +
Outsourcing (Mostly)
HR as “PSF”:
Maybe one [or more] of
your “PSFs” becomes
the tail that wags the
dog called Market
Cap????? [E.g.: engineeringIS-logistics-customer service]
The Raw Material …
The WOW
Project!
“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!)
“Learn not to
be careful.”
Photographer Diane Arbus
to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
Brand Inside
Brand You:
Distinct …
or
Extinct
“New Economy
changes how
firms treat
layoffs”
Headline, USA Today (03.19.2001)
New World of Work
< 1 in 10 F500
#1: Manpower Inc.
Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55M
Source: Daniel Pink, Free Agent Nation
“If there is nothing very
special about your work, no
matter how hard you apply
yourself, you won’t get
noticed, and that
increasingly means you
won’t get paid much either.”
Michael Goldhaber, Wired
Minimum New Work 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
“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
Invent. Reinvent. Repeat.
Source: HP banner ad
Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
Brand Inside
Brand Talent: The
Great War for Talent
The Case
“When land was the
productive asset, nations
battled over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
Earl Weaver—0. Tom Kelly—0. Jim
Leyland—0. Walter Alston—1AB.
Tony LaRussa—132 games in 6
seasons. Tommy Lasorda—P26
games. Sparky Anderson—1
33 Division Titles.
26 League Pennants. 14
World Series.
season.
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)
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, CEO, Enron
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)
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!
“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)
6. Diversity
Mess Rules!
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
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
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
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; sustain fruitful
collaborations; comfortable with sharing
information; see redistribution of power as
victory, not surrender; favor multidimensional feedback; readily accept
ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more
questions in a conversation? Who is a better
listener? Who has more interest in communication
skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’
list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful
Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“Investors are looking more and
more for a relationship with their
financial advisers. They want
someone they can trust, someone
who listens. In my experience, in
general, women may be better at
these relationship-building skills
than are men.”
Hardwick Simmons, CEO, Prudential Securities
“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)
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
8. Weird
The Cracked Ones
Let in the Light!
The Cracked Ones Let in the Light
“Our business needs a massive
transfusion of talent, and talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
Axiom: Never
hire
anyone without an
aberration in their
background!
QCC/Quick Culture Change
Hire Weird
Promote Deep
Rule of Three
(3 = Critical Mass)
Enron
COO: Louise Kitchen,
F, 29; created
EnronOnline as
“Skunk Works”
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”
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.
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 …
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
Obsession
Greatness
Performance
Pay
Youth Diversity
Women
Weird
Opportunity
Leading Genius
HR Folks: YOU – not
“marketing” - “OWN”
THE “BRAND
PROMISE”!
(If you wish.)
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
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.
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
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)
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!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
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.
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?
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!
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
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
“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
“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
“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
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
“But don’t we
need some
grout between
the tiles?”
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
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
10X/10X
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
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
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)
COMMUNITY
SERVICES!
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
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“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)
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]
GE & the Web
Purchasing: 2000: $6B;
2001: $15B
Sales: 1999: $1B;
2000: $7B; 2001: $20B+
Source: Business 2.0 (05.01)
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
Message: eCommerce
is not a
technology play! It is a
relationship, partnership,
organizational and
communications play, made
possible by new
technologies.
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
“Ebusiness is about rebuilding
the organization from the
ground up. Most companies today
are not built to exploit the Internet.
Their business processes, their
approvals, their hierarchies, the
number of people they employ … all of
that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
A DREAMER’S
MEDIUM!
“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 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.
Brand Outside
Strategy 1A:
Healthcare et al.:
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
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Impact #1(?):
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X Info
Consolidators X
Genetics & Devices
Revolution = YIKES!
1. Consumerism (Patientcentric Healthcare)
“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
“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, 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
“Savior for the Sick”
vs.
“Partner for Good
Health”
Source: NPR/VPR 08.15.00
“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
“Online Medical Records
Seen Empowering
Patients”
Source: Headline, Boston Globe,
07.31.2000, re 1K docs and 700K
patients @ CareGroup
“Self-medication is the wave
of the future, whether the
[pharmaceutical] industry
likes it or not.”
Wall Street Journal (5-23)
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”
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:
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
“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.
“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
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
“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
“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 health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from
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
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
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)
“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
Is your strategy centered
around customer-clientpatient-citizen
empowerment & selfdetermination? Hint: This
means letting go of
traditional sources of
power!
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
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
(!!!)
Women … 50+%
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!)
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)
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
[“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=
??
16;
“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!”
Message: WHAT AN
[overlooked] OPPORTUNITY!
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”)
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%)
[ Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA]
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
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
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!
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
Message: WHAT AN
[overlooked] OPPORTUNITY!
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
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
“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
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 “is” … WHY I
GET MAD.
MAD.
Wanted: Dead
[preferably] or Alive:
THE DESIGNER OF
MY RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and hate!
Hypothesis:
THE BASE CASE: I am a design fanatic. 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.
Internal “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 four dimensions:
Beauty, Grace, Clarity, Simplicity
• Re-invent!
• Repeat, with a new selection, every 15
working days.
Radical
Simplicity!
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.)
“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)
The Complexity Conundrum
Complex problems call for complex
systems.
Complexifiers take refuge behind complex
systems. (Complexifiers complexify complex
systems.)
Those who make the history books are
simplifiers.
If you can’t explain it in one page of prose,
it ain’t worth explaining.
Message: Design is
the wellspring of
branding. Great design
takes guts and is “soul
deep.”
Message: Men
cannot
design for women’s
needs.
Design Rules!
[Literally]
Palm Beach County’s U.C.B.*
[*Utterly Confusing Ballot]
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
Message:
“Experience” is the
“Last 80%”
“Experience” applies to
all work!
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
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
Hire a
theater director, as
a consultant or
FTE!
First Step (?!):
HR eTraining Director: Hire a
GAME Designer!
HP Revisited
PWC Consultants lead Business
Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service
Economy”)
Terrific Servers (“Goods Economy”)
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
“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
“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.]
Jesper Kunde’s Challenge:
All business processes
should be aligned with the
Brand 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:
DO THE EMPLOYEES
BUY THIS ACT
?
“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!
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
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DIFFERENCE TO THE
CLIENT ”
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.
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”
Dare to 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.
Their passion is infectious.” … “If
you love what you do, it shows.
You can’t fake love and succeed.”
II. Tactics …
“Leaders have a kid alive
in them.” … “Leadership
is the PROCESS of
ENGAGING PEOPLE in
CREATING a LEGACY of
EXCELLENCE.” …
“Hire smart – go
bonkers – have grace
– make mistakes –
love technology –
start all over again.”
“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
YOU
CAN’T KEEP UP!
YOU DON’T HAVE
THE ANSWERS!
BossMessage2001:
Priority
“To Don’t ” List
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.]
“You must be the
change you wish
to see in the
world.”
Gandhi
“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
“I am a
dispenser of
enthusiasm.”
Ben Zander:
“Entusiasmatore”
Word invented by Silvio Berlusconi, meaning
enthusiast-salesman
“A leader is a
dealer in hope.”
Napoleon
“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
am here to live my life
out loud.”
Emile Zola
“Let’s make a
dent in the
universe.”
Steve Jobs