Tom Peters Seminar2000
Distinct or …
Extinct
Memphis
08 November 2000
More at …
tompeters.com
Slides from this seminar.
Master Presentation, for in-depth.
“Cool Friends” (referenced in seminar).
Discussions re this stuff.
Calendar of events.
Etc.
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
NOW THAT’S B-I-G!
“The period 2000-2002 will bring
the single greatest change in
worldwide economic and
business conditions since we
came down from the trees.”
David Schneider & Grady Means,
MetaCapitalism
“The corporation as we know it,
which is now 120 years old, is
not likely to survive the
next 25 years. Legally and
financially, yes, but not
structurally and economically.”
Peter Drucker, Business 2.0 (08.00)
“We are in a
brawl with no
rules.”
Paul Allaire
S.A.V.
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)
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID
WITHIN 20 MINUTES!
Source: Business Week (09.00)
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
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
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
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth,
Lockheed, Coca-Cola
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!
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, COO, Enron
“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
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
Advance Paradigm
Data on 165,000,000 prescriptions per
year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per
scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98
Source: Business Week (09.00)
“For a dollar a month, an Ohio
insurance company will rent you a
GPS receiver to install in your car. As
part of your policy, it signals how
often, when, and which highways you
drive and into which neighborhoods
you go. The premium you pay reflects
your actual driving risk.”
Stan Davis & Christopher Meyer,
futureWEALTH
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
So what will be the
Basic Building
Block of the
New Org?
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
New Orleans
April 2000:
NAPM
You are the …
Rock Stars
of the
B2B Age!
Chicago
November 1999:
HRMAC
“support function” / “cost
center” / “bureaucratic
drag”
or …
Credo: W.W.P.F.
“WORK
WORTH
PAYING
FOR”
Every job done in
W.C.W. is also done
“outside” … for profit!
Are you “Rock
Stars of the
Age of Talent”
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Point of View (Methodology)
W.W.P.F. (100%)
When: Now!
The Raw Material …
The WOW
Project!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
Brand Inside
Brand You:
Distinct …
or
Extinct
2010 “Demographics”:
By 2010, full-time
workers will be in the
minority
Source: MIT study (28August2000)
New World of Work
< 1 in 10 F500
#1: Manpower Inc.
Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55M
Source: Daniel Pink, Free Agent Nation
“If there is nothing very
special about your work, no
matter how hard you apply
yourself, you won’t get
noticed, and that
increasingly means you
won’t get paid much either.”
Michael Goldhaber, Wired
Minimum New Work SurvivalSkillsKit2000
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Finishing Skills
Entrepreneurial Instinct
CEO/Leader/Businessperson
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
“You must realize that how you invest your
human capital matters as much as how you
invest your financial capital. Its rate of return
determines your future options. Take a job for
what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with
you for 5 years, how much will they
appreciate? How much will my portfolio of
career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
“Knowledge becomes obsolete
incredibly fast. The
continuing professional
education of adults is the
No. 1 industry in the next 30
years … mostly on line.”
Peter Drucker,
Business 2.0 (22August2000)
“The Main crisis in
school today is
irrelevance.”
Daniel Pink, Free Agent Nation
“Our education system is a
second-rate, factory-style
organization, pumping out
obsolete information in obsolete
ways. Schools are simply not
connected to the future of the kids
they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
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 scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
“Seller’s Market”: Tomorrow’s Headline*
“Molecular biologists are
up 3 points, economists
down 1/4, in
moderate trading”
*futureWEALTH, Stan Davis and
Christopher Meyer
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
From “1, 2 or 3” [JW] to …
“Best talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
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)
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
5. Youth
Grovel Before the Young!
“The Rise of the Teen Guru”
“They’re brilliant, ambitious,
and almost intuitively gifted at
technology. A new generation of
whiz kids are gaining
unprecedented power and
authority.”
Source: Cover story, Brill’s Content, 7-8/00
“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!
“Where do good new ideas come
from? That’s simple! From
differences. Creativity comes
from unlikely juxtapositions.
The best way to maximize differences
is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
mix-and-match – these people are inheriting the
earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
Women and neweconomy
management …
“On average, women and men
possess a number of different innate
skills. And current trends suggest
that many sectors of the twentyfirst-century economic community
are going to need the natural
talents of women.
Helen Fisher, The First Sex: The Natural Talents of
Women and How They are Changing the World
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more
questions in a conversation? Who is a better
listener? Who has more interest in communication
skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’
list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful
Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
“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)
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!
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
“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”
Gen-X Demands
Love a new challenge. Want
responsibility early. Crave
freedom, independence and
control. Are obsessed with
building their Human Capital.
Value more than work. See a very
compressed career timeline.
Source: Ed Michaels et al., The War for Talent
10. Leading
Genius
We are all unique!
One size
NEVER fits all.
One size fits
one. Period.
44 Players =
44 Projects =
44 different success
measures
Insights from 80,000 managers:
“People don’t change much.
“Don’t waste time trying to put in
what was left out.
“Try to draw out what was left in.
“That is hard enough.”
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Employee retention &
satisfaction:
Overwhelmingly, based on
their immediate manager!
Source: Marcus Buckingham & Curt Coffman,
First, Break All the Rules: What the World’s
Greatest Managers Do Differently
Managing: “The people
thing” [Inspire one]
[Cool!]
Leading: “The vision
thing” [Inspire all] [Cool!]
Mantra2000
Talent = Brand
What’s your company’s …
EVP?
Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
[EVP = “The company’s
fingerprint” = B.I.]
Source: Ed Michaels et al., The War for Talent
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, as are T.T.D. slides
later in the presentation.
Use Normal or Notes Page View to
access the notes.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
“This is all I
‘know’ in the
world!”
Tom Peters
I. THE IDEA
Find a
Fellow Freak
Faraway
“4Fs”:
Heart of the Matter
F2F!*
*Freak to Freak …
or K2K [Kook to Kook]
World’s Biggest Waste …
Selling “Up”
Axiom: Never waste compelling
evidence on people who don’t
agree with you, especially
bosses. The principal purpose
of such evidence is to inflame
people who already agree with
you – to the point that they will
take hard action.
II. THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Shit-I-Wish-It-WereOver Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our
Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War
for Talent via … a thoroughgoing review
of how safety and environmental
issues contribute to making this a
Great Place to Work?
Is It …
Fix these bloody customer problems that
have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young
division GM on …
using the Internet/Internet Speed to revisit
the entire process of how we get customer
input – before and during the fact – into the
heart of the Product Design Process?
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!
III. THE SOFT STUFF
Connect!
Message: It’s
Community
Organizing, stupid!
See: Saul Alinsky’s
Rules for Radicals
IV. BOTTOM LINE
The Enemy!
Epitaph from Hell …
Joe T. Jones
1942 – 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
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
Reprise: Brand Inside
The White Collar Revolution & The Web
[DYB.com!]
PSF as Building Block
[Work Worth Paying For!]
Work Worth Paying For = WOW Projects!
Brand You
[Everybody!]
The Great War for Talent!
Boss-free Implementation of STM! [F2F]
New Economy: Was-Is
•
•
•
•
•
•
•
Pine-paneled Office
•
Address: 1 Big Man Plaza •
Secretary
•
Suit
•
Formal
•
Rank conscious
•
Pretense (“Failures are •
for fools.”)
•
• I love “Yes men”
•
• Self-contained
Seat 9B, UA233
Address: Rick@Corp.com
Typing: 60 WPM
Casual M-F
Approachable
We are a HOT Team
Screwing up is as normal
as breathing
I love Misfits!
I love partners
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
Quality Not Enough!
“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
“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
Brand Outside
Strategy 1:
Lead the Customer!
“If you worship at the
throne of the voice of the
customer, you’ll get only
incremental advances.”
Joseph Morone, President,
Bentley College
“These days, you can’t succeed as a
company if you’re consumer led –
because in a world so full of so much
constant change, consumers can’t
anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner, Merkley Newman Harty
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
Nypro!
Brand Outside
Strategy 2:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
11.08.2000/0648AM:
2,972,048,788
70 days, 6 hours, 27 minutes …
+510,108,159
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%
Savings in service and support from
customer self-management: $500M
Enron: $400B in annual on-line
trading transactions. [50% total
bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset
transactions [80% of trades]
[Transition to e.Schwab: Rev. fell,
then quickly doubled]
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
COMMUNITY
SERVICES!/
CUSTOMER
CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Welcome to
D.I.Y. Nation!
“Changes in business processes will
emphasize self service. Your costs as
a business go down and
perceived service goes up
because customers are conducting it
themselves.”
Ray Lane, Oracle
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control
of my universe!
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Shop in your
Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
“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
“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
“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
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)
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]
ACT NOW,
ACT FAST,
KEEP ACTING
“It’s better to be first with less
than last with more. Success on
the Web isn’t just about
time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
SUMMARY:
REINVENT
EVERYTHING
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.
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
imagined before!
…
Brand Outside
Strategy 3:
Fighting Back via
Systems Integration!
THE CASE
B2B
1999 – 2004: 50X
2004: $7.4T
Source: GartnerGroup
(per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel,
Matsushita, Seagate, Etc.
E2Open.com
$700B
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
“Net Nips Real
Estate Sales Fees”
Headline, p.1B, USAToday 07.05.00*
*Homebytes.com, eHomes.com,
YourHomeDirect.com, etc.
Message: “BOX”
SELLERS LOSE!
THE RESPONSE
Message: Racing up the V.A.
Ladder. Doing More & More
… & More & More & More …
for/with the Customer and
the Supply-Demand Chain!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting bus!
(31,000 bods)
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
Defense-Offense:
Systems Integration/HVA
Delphi, Dana
United Technologies,
Corning, GE, Sun, HP,
Carpet One, Bud …
[Anybody in their right mind!]
E.g. …
UTC/Otis + Carrier:
boxes to “integrated
building systems”
WHAT IS
THE “VALUE
[ADDED]
PROPOSITION”?
Message:
Brand Outside
The Death Knell
for Ordinary:
Pursuing
Difference!
Brand Outside
Strategy 4:
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
Message: “Great Cool Stuff” Matters.
Great & Cool Trumps
Not-So-Great &
Ho Hum!
Message iMac:
“Great Stuff”
Takes Guts!!
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
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
packaging
Source: www.ecompany.com [06.00]
TARGET … “the champion
of America’s new design
democracy” (Time)
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.
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
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
1985: Party @ Chuck E. Cheese
(experience economy) $100.00
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
Brand Outside
Strategy 6:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 80%
Consumer Electronics … 51%
Cars … 50%+/80%
Etc.
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?
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42M
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
Weight Watchers International “Model”
“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
“Women don’t buy
brands. They
join them.”
Faith Popcorn, EVEolution
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/ Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“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
“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. [PLEASE:
THINK ABOUT IT!]
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!”
“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
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
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44,
stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is
stupid, stupid!
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
“Such a critical mass of
older women with a tradition
of rebellion and
independence and a way of
making a living has not
occurred before in history.”
Gerda Lerner, historian
Brand Outside
Strategy 7:
Embracing an
Age of
Self-Determination
The Individual
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
The
Organization:
Seller’s [Talent]
Market
“Talented people are less likely to
wait their turn. We used to view
young people as trainees; now
they are authorities. Arguably this
is the first time the older
generation can – and must –
leverage the younger generation
very early in their careers”
Ed Michaels, War for Talent (05.17.00)
The Market:
Fighting
Sameness with
Distinction
“These days, you can’t succeed as a
company if you’re consumer led –
because in a world so full of so much
constant change, consumers can’t
anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner, Merkley Newman Harty
Web World:
POWER TO
THE PEOPLE
The control revolution. The
potentially monumental shift in control
from institutions to individuals made
possible by new technology such as
the Internet. The conflict over such
change between individuals and
powerful entities (governments,
corporations, the media).
Source: Introduction, The Control Revolution,
Andrew Shapiro
Women Get
Respect … and
Take Charge
“Greater opportunity for
women is probably the
most significant gain
for human freedom in
the last century.”
Andrew Sullivan, The New Republic
The Elderly Get
Respect … and
Take Charge
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
Our Biggest
Industry: The
Patient Takes
Charge
“Savior for the Sick”
vs.
“Partner for Good Health”
Source: NPR/VPR 08.15.00
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.”
“Online Medical Records
Seen Empowering
Patients”
Source: Headline, Boston Globe,
07.31.2000, re 1K docs and 700K
patients @ CareGroup
The Poor Get
Respect
Grameen Bank/Bangladesh
“It’s not people who aren’t creditworthy. It’s banks that aren’t
people worthy.”
$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to nonpoverty threshold
Muhammad Yunus, Banker to the Poor
“The Grameen loan is
not simply cash. It
becomes a kind of ticket
to self-discovery and
self-exploration.”
Muhammad Yunus
Sooooo …
Is your strategy centered
around customer-client
empowerment & selfdetermination?
Hint: This means letting go
of traditional sources of
power!
Brand Outside
Strategy 8:
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]
“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
Brand = You Must Care!
“Success means never
letting the competition
define you. Instead you have
to define yourself based on a
point of view you care deeply
about.”
Tom Chappell, Tom’s of Maine
“We’re not going to be driven
by where we think a funding
agency would like to see us go.
We’re going to build our case …
and then find an organization
that agrees with us.”
Stephen Spongberg, Polly Hill Arboretum
“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
Brand = Special =
Passion = Plot =
Compelling Mythology
= Cause = Connection
= Heart = Integrity &
Trust
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
T.T.D./Calling the
Corporate Shrink!
“Organizational
Psychotherapy”/
WHO WE ARE!
T.T.D./Assignment Y2K
Write an essay on
“Who we are.”*
* Jesper Kunde, Corporate Religion
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the
right mentality. You go to your team and
you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded
sub-$200 watch market, they made it into
a brand name, named after the most
irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
“Salt is salt is salt. Right? Not when it
blue box
comes in a
with a
picture of a little girl carrying an umbrella.
Morton International continues to
dominate the U.S. salt market even though
it charges more for a product that is
demonstrably the same as many other
products
on the shelf.”
Tom Asaker, Humanfactor Marketing
Brand Outside
Reprise: Wimps &
Weenies Need Not
Apply!
Lead the Customer: Why Tough
Guts!
Failures!
Re-invention via ecommerce:
Why Tough
Total commitment to total
enterprise [and supply
chain] reinvention!
Systems Integration: Why Tough
Completely new view of
what a “product” is.
Design: Why Tough
True-believer-dom-ship
Encompassing/Cultural
Experience: Why Tough
Total
Reorientation
Women’s Market: Why Tough
Encompassing
Attitude
CULTURAL!
Self-Determination: Why Tough
Cede Control
Brand Power: Why Tough
Way of Life
Forever!
Passion Rules!
Touches Everything!
It Am Me [Personal!]
Message :
Not for the Faint
of Heart!
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
“You must be the
change you wish
to see in the
world.”
Gandhi
“A leader is a
dealer in hope.”
Napoleon
Have you changed
civilization today?
Source: HP banner ad
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti