Issue Y2K The Great War for Talent!

Tom Peters’
Business Excellence
in a Disruptive Age
New York /05.06.2004
Slides at …
“Uncertainty is the only
thing to be sure of.” —Anthony Muh,
head of investment in Asia, Citigroup Asset Management
“If you don’t like change,
you’re going to like
irrelevance even less.” —General Eric
Shinseki, Chief of Staff,
U. S. Army
Montgomery Ward … Kmart …
Sears … Macy’s … DEC … Wang
… Compaq … Chase Manhattan …
American Motors … Chrysler …
U. S. Steel … Bethlehem Steel …
AT&T … Soviet Union …
Wal*Mart … Dell …
Microsoft … U.S.A. …
1. All Bets
Are Off.
service jobs are in
danger of being
shipped overseas” —
The Dobbs Report/USN&WR/11.03/re new UCB
“Income Confers No
Immunity as Jobs
—Headline/USA Today/02.04
“One Singaporean worker
costs as much as …
3 … in Malaysia
8 … in Thailand
13 … in China
18 … in India.”
Source: The Straits Times/08.18.03
“Thaksinomics” (after Taksin
Shinawatra, PM)/ “Bangkok
Fashion City”/ “managed asset
reflation” (add to brand value of
Thai textiles by demonstrating flair
and design excellence)
Source: The Straits Times/03.04.2004
“There is no job
that is America’s
God-given right
—Carly Fiorina/ HP/
“Asia’s rise is the economic event
of our age. Should it proceed as it
has over the last few decades, it
will bring the two centuries of
global domination by Europe and,
subsequently, its giant North
American offshoot to an end.”
—Financial Times (09.22.2003)
“The world has arrived at a rare
strategic inflection point where
nearly half its population—living in
China, India and Russia—have been
integrated into the global market
economy, many of them highly
educated workers, who can do
just about any job in the world.
We’re talking about three billion
people.” —Craig Barrett/Intel/01.08.2004
“This is a dangerous world and
it is going to become more
“We may not be interested in
chaos but chaos is interested
in us.”
Source: Robert Cooper, The Breaking of Nations:
Order and Chaos in the Twenty-first Century
“We are in a
brawl with no
Paul Allaire
Successful Businesses’ Dozen Truths: TP’s 30-Year Perspective
1. Insanely Great & Quirky Talent.
2. Disrespect for Tradition.
3. Totally Passionate (to the Point of Irrationality) Belief in What
We Are Here to Do.
4. Utter Disbelief at the Bullshit that Marks “Normal Industry Behavior.”
5. A Maniacal Bias for Execution … and Utter Contempt
for Those Who Don’t “Get It.”
6. Speed Demons.
7. Up or Out. (Meritocracy Is Thy Name. Sycophancy Is Thy Scourge.)
8. Passionate Hatred of Bureaucracy.
9. Willingness to Lead the Customer … and Take the Heat Associated
Therewith. (Mantra: Satan Invented Focus Groups to Derail True
10. “Reward Excellent Failures. Punish Mediocre Successes.”
11. Courage to Stand Alone on One’s Record of Accomplishment
Against All the Forces of Conventional Wisdom.
12. A Crystal Clear Understanding of Brand Power.
2. The
“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
Kevin Kelly, New Rules for the New Economy
Forbes100 from 1917 to 1987: 39
members of the Class of ’17 were alive
in ’87; 18 in ’87 F100; 18 F100
“survivors” underperformed the market
by 20%; just 2 (2%), GE & Kodak,
outperformed the market 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
“The problem is never how
to get new, innovative
thoughts into your mind,
but how to get the old
ones out.”
Dee Hock
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
Market Share, Anyone?
240 industries: Market-share
leader is ROA leader
29% of the time.
Source: Donald V. Potter, Wall Street Journal
No Wiggle Room!
is innovation’s
worst enemy.”
Nicholas Negroponte
“Beware of the tyranny of
making Small Changes
to Small Things. Rather,
make Big Changes to Big
Things.” —Roger Enrico, former Chairman,
2A. Yo, Jim .
The Case for …
I. Good to Great
II. Quiet, Humble Leaders
I. Good to Great
II. Quiet, Humble Leaders
Good to Great: Fannie Mae …
Kroger … Walgreens … Philip
Morris … Pitney Bowes … Abbott
… Kimberly-Clark … Wells Fargo
Great Companies …
AGENDA SETTERS: “Set the Table”/
Pioneers/ Questors/ Adventurers
US Steel … Ford … Macy’s … Sears …
Litton Industries … ITT … The Gap …
Limited … Wal*Mart … P&G … 3M …
Intel … IBM … Apple … Nokia … Cisco
… Dell … MCI … Sun … Oracle …
Microsoft … Enron … Schwab … GE …
Southwest … Laker …People Express
… Ogilvy … Chiat/Day … Virgin … eBay
… Amazon … Sony … BMW … CNN …
I. Good to Great
II. Quiet, Humble Leaders
“Humility: The Surprise Factor in
Leadership … bosses with Gungho Qualities and Charisma May Be
Out of Fashion” —Headline/FT/
re JCollins/10.03 (TP: scribble: “Nelson, Wellington,
Montgomery, Disraeli, Churchill, Thatcher”)
“Humble” Pastels?
T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin
A. Lincoln/U.S. Grant/W.T. Sherman
M.L. King/C. de Gaulle/M. Gandhi/W. Churchill
H. Clinton/G. Steinem/I. Gandhi/G. Meir/M. Thatcher
E. Shockley/A. Grove/J. Welch/L. Gerstner/L. Ellison/B. Gates/
S. Jobs/S. McNealy/T. Turner/R. Murdoch/W. Wriston
A. Carnegie/J.P. Morgan/H. Ford/S. Honda/J.D. Rockefeller/
T.A. Edison
Elizabeth Cady Stanton/Susan B. Anthony/Martha Cary
Thomas/Carrie Chapman Catt/Alice Paul/Anna Elizabeth
Dickinson/Arabella Babb Mansfield/Margaret Sanger
“You can’t behave
in a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
“In Italy for 30 years under the Borgias
they had warfare, terror, murder,
bloodshed—and produced
Michelangelo, da Vinci and the
Renaissance. In Switzerland they had
brotherly love, 500 years of democracy
and peace, and what did they
produce—the cuckoo clock.”
Orson Welles, as Harry Lime, in The Third Man
3. The “PSF
The Professional
Service Firm Model.
“ Daddy,
what do you do?”
“I’m a ‘cost
center.’ ”
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
4. The Heart of the Value
Added Revolution:
PSFs Unbound/ The
“While everything may
it is also
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“Customers will try ‘low cost
providers’ … because
Majors have not
given them any clear
reason not to.”
Leading Insurance Industry Analyst
“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 Nordström and Jonas Ridderstråle, Funky Business
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, Unique Now ... or Never
“We make over three new
product announcements a
day. Can you remember
them? Our
Carly Fiorina
09.11.2000: HP bids
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“Customer Satisfaction” to
“Customer Success”
“We’re getting better at [Six
Sigma] every day. But we really
need to think about the customer’s
profitability. Are customers’
bottom lines really benefiting from
what we provide them?”
Bob Nardelli, GE Power Systems
Keep In Mind:
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.” (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
$7B) from marketing services
And the Winners Are …
Televisions –12%
Cable TV service +5%
Toys -10%
Child care +5%
Photo equipment -7%
Photographer’s fees +3%
Sports Equipment -2%
Admission to sporting event +3%
New car -2%
Car repair +3%
Dishes & flatware -1%
Eating out +2%
Gardening supplies -0.1%
Gardening services +2%
Source: WSJ/05.16.03
IBM/Q3/10.15.03/Rev: +5%
Services/Consulting: +11%
Software: +5%
Hardware: -5%
PCs: -2%
Technology/Chips: -33%
5. A World of
“Experiences are as
distinct from services
as services are from
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
The “Experience Ladder”
Raw Materials
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“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
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
Bob Lutz:
Source: NYT 10.19.01
“Lexus sells its cars as
containers for our
sound systems. It’s
marvelous.”—Sidney Harman/
Harman International
Duet … Whirlpool … “washing machine” to
“fabric care system” … white goods: “a sea of
undifferentiated boxes” … $400 to $1,300 …
“the Ferrari of washing machines” …
consumer: “They are our little mechanical
buddies. They have personality. When they are
running efficiently, our lives are running
efficiently. They are part of my family.” …
“machine as aesthetic showpiece” … “laundry
room” to “family studio” / “designer laundry
room” (complements Sub-Zero refrigerator and
home-theater center)
Source: New York Times Magazine/01.11.2004
>$600: 10% to 18%
$400-$600: 49% to 32%
<$400: 41% to 50%
Source: Trading Up, Michael Silverstein & Neil Fiske
“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, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Experiences: Female
6. Experiences+:
Embracing the
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients become
what they want to be.” —Gian Luigi
The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’
Dreamketing: The art of telling stories and
Dreamketing: Promote the dream, not the
Dreamketing: Build the brand around the
main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
(Revised) Experience Ladder
Dreams Come True
Awesome Experiences
Raw Materials
“The sun is setting on the Information Society—even before we
have fully adjusted to its demands as individuals and as
companies. We have lived as hunters and as farmers, we have
worked in factories and now we live in an information-based
society whose icon is the computer. We stand facing the fifth
kind of society: the Dream Society. … The Dream Society is
emerging this very instant—the shape of the future is visible
today. Right now is the time for decisions—before the major
portion of consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will have to appeal to
our hearts, not to our heads. Now is the time to add emotional
value to products and services.” —Rolf Jensen/The Dream Society:How the
Coming Shift from Information to Imagination Will Transform Your Business
“Trustmarks come after brands;
Lovemarks come after Trustmarks.
Think about how you make the most
money. You make it when loyal users,
heavy users, use your product all the
time. So having a long-term Love
affair is better than having a trusting
relationship.” —Kevin Roberts, Saatchi & Saatchi, The
Future Beyond Brands: Lovemarks
7. The
of “Experiences”:
[Mostly Ignored]
Design Rules!
Design Myths.
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
[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)
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
Source: [06.00]
Westin’s …
Design’s place in
the universe.
And Tomorrow …
“Fifteen years ago companies
competed on price. Now it’s
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
Design is the only
thing that differentiates one
product from another in the
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
DESIGN is the
principal difference
between love and
THE BASE CASE: I am a design fanatic. Though not
“artistic,” I love “cool stuff.” But it goes [much]
further, far beyond the personal. Design has become
a professional obsession. I SIMPLY BELIEVE THAT
EXPERIENCE. Design, as I see it, is arguably the
of whether a productservice-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things”
that damn few companies put – consistently – on the
front burner.
Message (?????): Men
cannot design for women’s
“Perhaps the macho look
can be interesting … if you
want to fight dinosaurs. But
now to survive you need
intelligence, not power and
aggression. Modern intelligence
means intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
8. Trends Worth Trillion$$$ I:
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care … 80%
2/3rds working women/
50+% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Men’s median income: +0.6%
Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
91% women:
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
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
“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's View of Male
Technically knowledgeable;
assertive; get to the point; pushy;
condescending; insensitive to
women’s needs.
Source: Judith Tingley, How to Sell to the Opposite Sex
(Martha Barletta, Marketing to Women)
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage
contributes significantly to what is
called ‘women’s intuition’ and is one
of the reasons why a woman can read
between the lines of what people say.
Men, however, shouldn’t despair.
They are excellent at imitating
animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Vision: Men, focused; Women,
Hearing: Women’s discomfort
level I/2 men’s.
Smell: Women >> Men.
Touch: Most sensitive man <
Least sensitive women.
Source: Martha Barletta, Marketing to Women
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that
*Redwood (UK)
Read This Book …
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.’ ”
“Women don’t buy
join them.”
“Year of the
Enterprise Reinvention!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
Psssst! Wanna
see my “porn”
Ad from Furniture /Today (04.01):
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
(94% = 272)
1. Men and women are different.
2. Very different.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
10. Women’s Market = Opportunity No. 1.
“And even if they manage to get the age thing right,
[Marti] Barletta says companies still tend to screw up
in fairly predictable ways when they add women to the
equation. Too often, their first impulse is to paint the
brand pink, lavishing their ads with flowers and bows,
or, conversely, pandering with images of women
warriors and other cheesy clichés. In other cases they
use language intended to be empathetic that come
across instead as borderline offensive. ‘One bank took
out an ad saying, We recognize women’s special
needs,’ says Barletta. ‘No offense, but doesn’t that
sound like the Special Olympics?’ ” —Fast Company/03.04
9. Trends Worth Trillion$$$ II:
Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44,
Subject: Marketers & Stupidity
“18-44 is
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
44-65: “New
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Consumer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
Women: The Sweetest
of Sweet Spots for
—David Wolfe and Robert
Snyder, Ageless Marketing
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
USN&WR Cover/06.01
“Sixty Is the
New Thirty”
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$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
“Advertisers pay more to reach the kid
because they think that once someone hits
middle age he’s too set in his ways to be
susceptible to advertising. … In fact,
this notion of impressionable kids
and hidebound geezers is little
more than a fairy tale, a Madison
Avenue gloss on Hollywood’s cult
of youth.”—James Surowiecki (The New
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“Women 65 and older spent $14.7
billion on apparel in 1999, almost as
much as that spent by 25- to 34-yearolds. While spending by the older
women increased by 12% from the
previous year, that of the younger
group increased by only 0.1%. But
who in the fashion industry is
currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
Possession Experiences /“Desires for
things”/Young adulthood/to 38
Catered Experiences/ “Desires to be
served by others”/Middle adulthood
Being Experiences/“Desires for
trancending experiences”/Late
Source: David Wolfe and Robert Snyder/Ageless Marketing
“ ‘Age Power’ will
rule the
and we are woefully
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Innovation” & “Target
Delivery Systems”
10. Boss Job One:
The Talent
Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
Brand =
“The leaders of Great
Groups love talent and know
where to find it. They revel in
the talent of others.”
Warren Bennis & Patricia Ward Biederman,
Organizing Genius
Les Wexner: From
sweaters to people!
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
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
“Deviance tells
the story of every mass
market ever created. What
Deviants, Inc.
starts out weird and dangerous
becomes America’s next big corporate
payday. So are you looking for the next
mass market idea? It’s out there … way
out there.”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
CM Prof Richard Florida on
“Creative Capital”: “You cannot
get a technologically
innovative place unless it’s
open to weirdness,
eccentricity and difference.”
Source: New York Times/06.01.2002
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, BusinessWeek, 11.20.00
Women’s Strengths Match New Economy
Imperatives: Link [rather than rank] workers;
favor interactive-collaborative leadership style
[empowerment beats top-down decision making];
sustain fruitful collaborations; comfortable with
sharing information; see redistribution of power
as victory, not surrender; favor multi-dimensional
feedback; value technical & interpersonal skills,
individual & group contributions equally; readily
accept ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
Peak Partic. Age 45
% Coll. Stud.
G.B. E.U. Ja.
29% 18% 6%
50% 48% 26%
Source: Judy Rosener, America’s Competitive Secret
“Internationally, the United
States ranked sixtieth in
women’s political
leadership, behind Sierra
Leone and tied with
—Marie Wilson, Closing the Leadership Gap
“Are men
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
11. Brand Talent+:
Addressing the
“My wife and I went to a [kindergarten] parent-teacher
conference and were informed that our budding
refrigerator artist, Christopher, would be receiving a
grade of Unsatisfactory in art. We were shocked. How
could any child—let alone our child—receive a poor
His teacher
informed us that he had refused to
color within the lines, which was a
state requirement for
demonstrating ‘grade-level motor
skills.’ ”
grade in art at such a young age?
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En masse the children leapt from
their seats, arms waving. Every child was an artist. SECOND
GRADE: About half the kids raised their hands, shoulder high, no
higher. The hands were still. THIRD GRADE: At best, 10 kids out
of 30 would raise a hand, tentatively, self-consciously. By the
time I reached SIXTH GRADE, no more than one or two kids
raised their hands, and then ever so slightly, betraying a fear of
being identified by the group as a ‘closet artist.’ The point is:
Every school I visited was participating
in the suppression of creative genius.”
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
15 “Leading” Biz Schools
Design/Core: 0
Design/Elective: 1
Creativity/Core: 0
Creativity/Elective: 4
Innovation/Core: 0
Innovation/Elective: 6
Source: DMI/Summer 2002
“There is little evidence that
mastery of the knowledge
acquired in business schools
enhances people’s careers, or
that even attaining the MBA
credential itself has much effect
on graduates’ salaries or career
attainment.” —Jeffrey Pfeffer (tenured professor,
Stanford GSB/2004)
Ye gads: “Thomas Stanley has not only found no
correlation between success in school and an
ability to accumulate wealth, he’s actually found
a negative correlation. ‘It seems that schoolrelated evaluations are poor predictors of
economic success,’ Stanley concluded. What did
predict success was a willingness to take risks.
Yet the success-failure standards of most
schools penalized risk takers. Most educational
systems reward those who play it safe. As a
result, those who do well in school find it hard to
take risks later on.”
Richard Farson & Ralph Keyes, Whoever Makes the Most Mistakes Wins
WEIRD … the HVA/
High Value Added
High Standard
Disgruntled Customers
Off-the-Scope Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
CUSTOMERS: “Futuredefining customers may
account for only 2% to 3%
of your total, but they
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
“If you worship at the
throne of the voice of the
customer, you’ll get only
incremental advances.”
Joseph Morone, President,
Bentley College
Primary Obstacles to “Marketing-driven Change”
1. Fear of “cannibalism.”
2. “Excessive cult of the
consumer”/ “customer driven”/
“slavery to demographics, market
research and focus groups.”
3.Creating “sustainable
Source: John-Marie Dru, Disruption
20 of 26
7 of top 10*
*P&G: Declining domestic sales
in 20 of 26 categories; 7 of top 10
(The “billiondollar” problem.)
Source: Advertising Age 01.21.2002/BofA Securities
Account planning
has become “focus
group balloting.”
“Chivalry is dead. The new code of conduct is
an active strategy of disrupting the status quo
to create an unsustainable series of competitive
advantages. This is not an age of defensive
castles, moats and armor. It is rather an age of
cunning, speed and surprise. It may be hard for
some to hang up the chain mail of ‘sustainable
advantage’ after so many battles. But
hypercompetition, a state in which sustainable
advantages are no longer possible, is now the
only level of competition.”
Rich D’Aveni, Hypercompetition: Managing the Dynamics of
Strategic Maneuvering
Rajeev Batra says: ‘What these times call for is more creative
and breakthrough reengineering of product and service benefits,
but we don’t train people to think like that.’ The way marketing is
taught across business schools is far too analytical and datadriven. ‘We’ve taken away the emphasis on creativity and big
ideas that characterize real marketing breakthroughs.’ In India
there is an added problem: most senior marketing jobs have
been traditionally dominated by MBAs. Santosh Desai, vice
president, McCann Erickson, an MBA himself, believes in India
engineer-MBAs, armed with this Lego-like approach, tend to
reduce marketing into neat components. ‘This reductionist
thinking runs counter to the idea that great brands must have a
core, unifying idea.’ ”—Businessworld/04Nov2002/“Why Is
Marketing Not Working?”
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
“To grow, companies need
to break out of a vicious
cycle of competitive
benchmarking and
imitation.” —W. Chan Kim & Renee Mauborgne,
“”Think for Yourself —Stop Copying a Rival,” Financial
“The short road to
ruin is to emulate
the methods of
your adversary.”
— Winston Churchill
Employees: “Are there
enough weird
people in the lab these
V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: “There
is an ominous
downside to strategic supplier
relationships. An SSR supplier is not
likely to function as any more than a mirror
to your organization. Fringe suppliers that
offer innovative business practices need
not apply.”
Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on
Fringe Competitors, Lost Customers, and Rogue Employees
Boards: “Extremely contentious
boards that regard dissent as an
obligation and that treat no
subject as undiscussable” —Jeffrey
Sonnenfeld, Yale School of Management
“The Bottleneck is at the
Top of the Bottle”
“Where are you likely to find people
with the least diversity of experience,
the largest investment in the past, and
the greatest reverence for industry
At the top!”
— Gary Hamel, “Strategy or Revolution/
Harvard Business Review
We become
who we hang
out with!
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the
organizational code). (1.5) Hire people who make you
uncomfortable, even those you dislike. (2) Hire people you
(probably) don’t need. (3) Use job interviews to get ideas, not
to screen candidates. (4) Encourage people to ignore and defy
superiors and peers. (5) Find some happy people and get them
to fight. (6) Reward success and failure, punish inaction.
(7) Decide to do something that will probably fail, then convince
yourself and everyone else that success is certain. (8) Think of
some ridiculous, impractical things to do, then do them.
(9) Avoid, distract, and bore customers, critics, and anyone who
just wants to talk about money. (10) Don’t try to learn anything
from people who seem to have solved the problems you face.
(11) Forget the past, particularly your company’s success.
Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting,
Managing, and Sustaining Innovation
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10. Avoid moderation!
Big Idea/s
Innovation Index: How
many of your Top 5
Strategic Initiatives score
7 or higher (out of 10) on
a “Weirdness/Profundity
The Re-imagineer’s Credo … or,
Pity the Poor Brown*
Technicolor Times demand …
Technicolor Leaders and Boards who recruit …
Technicolor People who are sent on …
Technicolor Quests to execute …
Technicolor (WOW!) Projects in partnership with …
Technicolor Customers and …
Technicolor Suppliers all of whom are in pursuit of …
Technicolor Goals and Aspirations fit for …
Technicolor Times.
13. Leading in Totally
Screwed-Up Times: The
Passion Imperative.
33 Division Titles. 26
League Pennants. 14
World Series: Earl Weaver—0.
Tom Kelly—0. Jim Leyland—0.
Walter Alston—1AB. Tony
LaRussa—132 games, 6 seasons.
Tommy Lasorda—P, 26 games.
Sparky Anderson—1 season.
“Ninety percent of what
we call ‘management’
consists of making it
difficult for people to get
things done.” – P.D.
“I don’t
Organizing Genius / Warren Bennis and Patricia
Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or her
absolute best.”
“The best thing a leader can do for a
Great Group is to allow its members to
discover their greatness.”
The Kotler Doctrine:
1965-1980: R.A.F.
1980-1995: R.F.A.
1995-????: F.F.F.
“If Microsoft is good at anything, it’s
avoiding the trap of worrying about
criticism. Microsoft fails constantly.
They’re eviscerated in public for lousy
products. Yet they persist, through
version after version, until they get
something good enough. Then they
leverage the power they’ve gained in
other markets to enforce their standard.”
Seth Godin, Zooming
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
“I’m not comfortable
I’m uncomfortable.”
“If things seem
under control,
you’re just not
fast enough.”
Mario Andretti
“Dream as if
you’ll live forever.
Live as if you’ll
die today.”
—James Dean
“the wildest
chimera of a
—The Federalist on
Jefferson’s Louisiana Purchase