To appreciate
this presentation [and insure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Part 4
Tom Peters’
EXCELLENCE.
ALWAYS.
New Master/21 August 2008
Slides at …
tompeters.com
Ten Parts
P1.1, P1.2, P1.3, P1.4/Generic
P2/Leadership
P3/Talent
P4/“Value-added Ladder”
P5/“New” Markets
P6/“The Equations”
P7.1/Implementation
P7.2/Action
P8/13 “Guru Gaffes”
P9/Health“care”
P10/“The Lists”
part
four
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
Up,
Up,
Up,
Up
the Value-added Ladder.
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
California Closets: “a
whole-life upgrade, not
just a tidy bedroom.”
—WSJ/0329.07, “Why the ContainerStore Guy Wants to Be Your Therapist”
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.
Huge: Customer
Satisfaction
versus
Customer
Success
“ ‘Results’ are
measured by the
success of all those
who have purchased
your product or
service” —Jan Gunnarsson & Olle Blohm, The
Welcoming Leader
“He had done nothing to sell me on his
business, yet he had given me the most
Because
his sole concern had
been my welfare and the
success of my business.”
powerful sales pitch of my life.
—Jim Penman, on learning how to sell (What Will
They Franchise Next? The Story of Jim’s Group)
The Value-added Ladder/ STUFF ‘N’ THINGS
Goods
Raw Materials
The Value-added Ladder/Stuff & TRANSACTIONS
Services
Goods
Raw Materials
The Value-added Ladder/ OPPORTUNITY-SEEKING
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
“The business of selling is not just about matching viable
It’s
equally about managing the
change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution. One of the key differentiators of
solutions to the customers that require them.
our position in the market is our attention to managing change
and making change stick in our customers’ organization.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
The Value-added Ladder/ OPPORTUNITY-SEEKING
Implemented
Gamechanging
Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)
Chicago:
HRMAC
“support function” /
“cost center”/
“overhead”
or …
Are you …
“Rock
Stars of the
Age of
Talent”
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
Every job done
in W.C.W.
is also done
“outside” …
for profit!
[White Collar World]
Core Mechanism:
“Game-changing Solutions”
PSF
(Professional Service Firm “model”/The Organizing Principle)
+
Brand You
(“Distinct” or “Extinct”/The Talent)
+
Wow! Projects
(“Different” vs “Better”/The Work)
Series/Reinventing Work
The Project 50: Fifty Ways To Transform
Every “Task” Into A Project That Matters
The Professional Service Firm 50: Fifty
Ways To Transform Your “Department”
Into A Professional Service Firm Whose
Trademarks Are Passion And Innovation
The Brand You 50: Fifty Ways To Transform
Yourself From An “Employee” Into A Brand
That Shouts Distinction, Commitment And
Passion
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
Agriculture Age (farmers)
Industrial Age (factory workers)
Information Age (knowledge workers)
Conceptual Age*
(creators)
*Murakami Teruyasu: “Age of Creation Intensification”
Source: Dan Pink, A Whole New Mind
The “PSF35”:
Thirty-Five
Professional Service Firm
Marks of Excellence
The PSF35: The Work & The Legacy
1.
CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the
Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”
Pointed
Point of
View!
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
Fleet Manager
Rolling Stock Cost
Minimization Officer
vs/or
Chief of Fleet Lifetime
Value Maximization
Strategic Supply-chain Executive
Customer Experience Director
(via drivers)
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
Big Idea:
“Corporation” as
Mega-“PSF”
(Professional Service
Firm*)
* “Virtual” Collection of Entrepreneurially-minded
Professionals (“Talent”/“Roster”) Creating/Applying
Intellectual Capital (“Work Product”)
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
Up,
Up,
Up,
Up
the Value-added Ladder.
EXCELLENCE.
VALUE-ADDED LADDER II.
EXPERIENCE IT.
“Experiences
are as distinct
from services as
services are from
goods.”
—Joe Pine & Jim 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
Warren Goes
Shopping …
Q: “Why did you buy
Jordan’s Furniture?”
A: “Jordan’s is
It’s all
showmanship.”
spectacular.
Source: Warren Buffet interview/Boston Sunday Globe/12.05.04
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-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
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
C
*Chief e
O*
Xperience Officer
Hire a
theater director,
as a consultant
or FTE!
First Step (?!):
“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
“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 &
Female
dominance
Experiences:
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
“Perfection is achieved
only by institutions on the
point of collapse.”
— C. Northcote Parkinson
3M’s Innovation
Crisis: How Six Sigma
Almost Smothered
Its Idea Culture
Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is
how fast a culture can be torn apart,” 3M lead scientist; “In
an innovation economy, [6 Sigma] is no longer a cure all”/BW)
“What Rikyu
demanded was not
cleanliness alone,
but the beautiful
and the natural
also.”
—Kakuzo Okakura, The Book of Tea
“Rikyu was watching his son Sho-an as he
swept and watered the garden path. ‘Not clean
enough,’ said Rikyu, when Sho-an had finished
his task, and bade him try again. After a weary
hour, the son turned to Rikyu: ‘Father, there is
nothing more to be done. The steps have been
washed for the third time, the stone planters
and the trees are well sprinkled with water,
moss and lichens are shining with a fresh
verdure; not a twig, not a leaf have I left on the
ground.’ ‘Young fool,’ chided the tea-master,
‘that is not the way a garden path should be
swept.’ Saying this, Rikyu stepped into the
garden, shook a tree and scattered over the
garden gold and crimson leaves, scraps of the
brocade of autumn! What Rikyu demanded was
not cleanliness alone, but the beautiful and the
natural also.” —Kakuzo Okakura, The Book of Tea
2-cent
candy!
Planetree:
A Radical Model for New
Healthcare/Healing/
Wellness Excellence
"All sane persons agree that 'healthcare needs an overhaul.' And that's where
the agreement stops. Healthcare issues are thorny, and system panaceas are
about as likely as the sun rising in the West. But there is good news here and
there--and great news courtesy the Planetree Model.
"In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the
patient and frontline staff often get lost in the shuffle. Enter Planetree. While
oceanic systemic solutions remain out of reach, Planetree provides a
remarkable demonstration of what healthcare--with the patient at the center-can be all about; and is all about among Planetree Alliance members.
"I know this may sound ridiculous, but everything about the 'model' works. It
is great for patients and their families--and is truly about humanity and
healing and health and longterm wellness, not just a 'fix' for today's problem.
It is great for staff--Planetree-Griffin is rightly near the top of the 'best places
to work in America' list, year in and year out. And Planetree also works as a
'business model'--any effectiveness measure you can name is in the Green
Zone at Griffith.
"For 25 years my 'gig' has been 'excellence.' Put simply, there is no better
exemplar of customer-centered, employee-friendly excellence, in any
industry, than Griffin-Planetree. The Planetree model works--and in my
extensive work in the health sector, I 'sell' it shamelessly, and pray that my
clients are taking it all in."
tom peters/response to request for comment on Planetree
The 9 Planetree Practices
1. The Importance of Human Interaction
2. Informing and Empowering Diverse Populations: Consumer
Health Libraries and Patient Information
3. Healing Partnerships: The importance of Including
Friends and Family
4. Nutrition: The Nurturing Aspect of Food
5. Spirituality: Inner Resources for Healing
6. Human Touch: The Essentials of Communicating
Caring Through Massage
7. Healing Arts: Nutrition for the Soul
8. Integrating Complementary and Alternative Practices
into Conventional Care
9. Healing Environments: Architecture and Design
Conducive to Health
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
The Patient-Family Experience
“Patients are stripped of control, their clothes are
taken away, they have little say over their schedule,
and they are deliberately separated from their family
and friends. Healthcare professionals control all of the
information about their patients’ bodies and access to
the people who can answer questions and connect them
with helpful resources. Families are treated more as
intruders than loved ones.” Putting Patients First
—
Susan Frampton, Laura Gilpin, Patrick Charmel
,
139,380 former
patients from 225 hospitals:
Press Ganey Assoc:
none
of THE top 15 factors
determining Patient Satisfaction
referred to patient’s health outcome
PS directly related to Staff Interaction
PS directly correlated with Employee
Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions require
more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the
interactions themselves add nothing to the budget.
Kindness is
free.
Listening to patients or answering their
questions costs nothing. It can be argued that negative
interactions—alienating patients, being non-responsive to their
needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative,
withdrawn and less cooperative—requiring far more time
than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
Care Partner Programs
(IDs, discount meals, etc.)
Unrestricted visits (“Most Planetree hospitals
have eliminated visiting restrictions altogether.”) (ER at one
hospital “has a policy of never separating the patient from the
family, and there is no limitation on how many family members
may be present.”)
Collaborative Care Conferences
Clinical Guidelines Discussions
Family Spaces
Pet Visits (POP: Patients’ Own Pets)
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Griffin:
Music in the parking
lot; professional musicians in
the lobby (7/week, 3-4hrs/day) ;
5 pianos ;
volunteers (120-140 hrs arts &
entertainment per month).
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“Planetree Look”
Woods and natural materials
Indirect lighting
Homelike settings
Goals: Welcome patients, friends and
family … Value humans over technology ..
Enable patients to participate in their care
… Provide flexibility to personalize the
care of each patient … Encourage
caregivers to be responsive to patients …
Foster a connection to nature and beauty
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Access to nurses station:
“Happen to”
vs
“Happen with”
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Conclusion:
Caring/Growth
“Experience”
“It was the goal of
Planetree to help
patients not only get
well faster but also to
stay well longer.”
—Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
(Planetree Alliance/Griffin Hospital)
Care!/Love!/Spirit!
Self-Control!
Connect!/learn!/
involve!/Engage!
Understanding!/Growth!
De-stress!/heal!
Whole patient & family
& friends!
be well!/stay well!
“Planetree is about
human beings
caring for other
human beings.”
—Putting Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel (“Ladies and gentlemen serving
ladies and gentlemen”—4S credo)
f.y.i.
Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results:
Financially successful.
Expanding programsphysically. Growing market
share. Only hospital in “100
Best Cos to Work for”—
7 consecutive years,
currently #6.
—“Five-Star Hospitals,” Joe Flower,
strategy+business (#42)
“What’s Really Propping
Up the Economy:
Healthcare has added 1.7
million jobs since 2001.
The rest of the private
sector? None.”
Source: Title, cover story, BusinessWeek, 0925.2006
Excellence.
Bank on it.
(commerce bank.)
“We defy conventional
wisdom, operating more
like the young bucks at
Starbucks than the old
farts at the Bank of
America.” —Vernon Hills
The Commerce Bank Model
“Are you going to cost cut
your way to prosperity?
Or …
are you going to spend your
way to prosperity?”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
*deposit focused.
*Customer value-added.
*Great retail experience.
*Best facilities. Best locations.
*No stupid rules.
*Driven by revenue growth,
not cost reduction.
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“cost cutting
is a death
spiral.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
“Our whole
story is
growing
revenue.”
—Vernon Hills (Top-line driven; standard
is bottom-line driven by cost cutting)
The Commerce Bank Model
“over-invest in our
people, over-invest
in our facilities.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“we want
them in our
stores.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
Commerce Bank: From “Service” to “Experience”
7X. 730A800P. F12A.*
*’93-’03/10 yr annual return: CB: 29%;
WM: 17%; HD: 16%. Mkt Cap: 48% p.a.
The Commerce Bank Model
“we don’t accept the 80/20 theory.
We believe every customer has
value, that you can’t tell which
one is the high-value customer
over time, and that that
philosophy degrades the brand.”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
The Commerce Bank Model
“every computer at commerce bank has a
special red key on it that
says, ‘found something stupid that we are doing
that interferes with our ability to service the
customer? Tell us about it, and if we agree, we
will give you $50.’”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth Industry,
Vernon Hill & Bob Andelman
“You do not merely want to be
You
want to be
considered the
only ones who
do what you
do.”
the best of the best.
—Jerry Garcia
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
SOUL I.
DESIGN.
All Equal Except …
“At Sony we assume that all products
of our competitors have basically the
same technology, price, performance
and features. Design is the
only thing that
differentiates one product
from another in the
marketplace.” —Norio Ohga
“Design is treated
like a religion
at BMW.” —Fortune
“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 of a man-made
creation.”
meaning of design.
—Steve Jobs
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
“With its carefully conceived mix of colors and textures,
Starbucks
aromas and music,
is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the exemplar
‘Every
Starbucks store is carefully designed
to enhance the quality of everything
the customers see, touch, hear, smell
or taste,’ writes CEO Howard Schultz.”
of … the aesthetic imperative. …
-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
“Having spent a century or more focused on other
goals—solving manufacturing problems, lowering costs,
making goods and services widely available, increasing
convenience, saving energy—we are increasingly
engaged in making our world special. More people in
more aspects of life are drawing pleasure and meaning
from the way their persons, places and things look and
Whenever we have the
chance, we’re adding sensory,
emotional appeal to ordinary
function.” — Virginia Postrel, The Substance of
feel.
Style: How the Rise of Aesthetic Value Is Remaking
Commerce, Culture, and Consciousness
O*
C
*Chief
Design
Officer
“Business people
don’t need to
‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/
University of Toronto
Message (?????):
cannot
Men
design for women’s
needs.
“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
Bottom Line.
Design “is” …
WHAT & WHY I
LOVE.
LOVE.
I
LOVE
my …
All Time
No.1
(TP)
Ziplocs
Design “is” …
WHY I GET MAD.
MAD.
THE
DESIGNER OF MY
KRUPPS/ CUISINART
COFFEE-MAKER.
Major Reward!
Wanted:
THE
DESIGNER OF MY
NEW HP
COMPUTER
Wanted:
Design is …
never
neutral.
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!
THE
DESIGN49
Better By Design
The Design49
Tom
Peters/Auckland/30March2005
Better By Design: Tom’s Design49
1. There are only 2 rules.
2. Rule #1: You can’t beat Wal*Mart on price or China on cost.
3. Rule #2: See Rule #1.
4. Econ Survival = Innovate and Sprint Up the Value-added
Chain … OR DIE!
5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE
“SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE.
6. Design as Soul-Core Competence #1 is a “cultural imperative,” not
a “programmatic” or “process” or
“throw $$$ at it” issue!
7. CDEs (Culturally Design-driven Enterprises) use DesignExperiences-Dream Merchantry-Lovemarks as the Lead
Dog(s) in the OlympianInnovation-“Strategy”-Value
Proposition Struggle.
8. “Dream Merchant” makes as much sense for IBM or GE or UPS as
for Starbucks!
Better By Design: Tom’s Design49
9. At CDEs, Design is the Heart of the “Emotional Branding”
Process.
10. CDEs wholeheartedly embrace ideas such as “mystery,”
“surprise,” sensuality.”
11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great”
and “Gasp-worthy” and “Passion” and “Love”! (Axiom: Extreme
language breeds extreme products and services.)
12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise =
Crappy enterprise.)
13. CDEs love “strange” and “weird.”
14. CDEs scour the earth for “strange” and “weird” people. (CDEs
know: FREAKS RULE!)
15. CDEs are “extremists.” (KR: “Avoid moderation.”)
16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH!
(We must use non-linear measures!)
Better By Design: Tom’s Design49
17. CDEs seek Discontinuities. (JG: “We don’t want to be the best of
the best, we want to be the only ones who do what we do.”)
18. CDEs are “respectful” of their customers, but not slaves to their
customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening
to customers” is over-rated! Focus groups suck!)
19. But: “Lead” customers are an entirely different matter!
20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo
Brand”!)
21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT
FAILURES. PUNISH MEDIOCRE SUCCESSES.”
22. At CDEs the Design Director is at least an Exec Vice President, a
Member of the Senior Executive Team, perhaps on the Board, and
has an office within 10 meters of the CEO (unless she is the CEO).
23. Design Directors at large companies not worth $5,000,000
per year aren’t worth hiring! (DD$21M.)
Better By Design: Tom’s Design49
24. Great Designers are “10,000X” better than “good designers.”
25. At CDEs CFOs are never former CFOs! The CEO always doubles
as the Chief Innovation Officer.
26. CDEs are “Top-line Obsessed.”
27. CDE execs know there is a chasm between “excellent design”
and “game-changer design.”
28. Gasp-worthy design is a moving target!
29. No Broadway shows last forever. So too, great designers!
(Hire them! Pay them! Cherish them! Nurture them! Fire them!)
30. Great design wrestles incessantly with the issue of “cool”
and/versus “usability.”!
31. Designers “get” the stunning principles of Wabi Sabi. (Great
designers side with Chris Alexander against the A.I.A.)
32. CDEs “get” the “feminine side” of life.
Better By Design: Tom’s Design49
33. CDEs Know I: WOMEN BUY EVERYTHING!
34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS
FOR WOMEN.
35. CDEs understand that “We’re getting’ older”—and vigorously
embrace the Boomer-Geezer market.
36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” …
are by and large healthy … and have 20 or so years left!
37. CDEs wonder: Can 28-year-olds design “experiences” for 68-yearolds?
38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-GreenieWellness.
39. “Design-mindfulness” is as apparent in the CDE’s facilities as in
its products-services!
Better By Design: Tom’s Design49
40. “Design mindfulness” is as apparent in HR and
Engineering and Logistics and IS/IT as in NPD.
41. CDEs will settle for nothing less then “beautiful,” “gaspworthy” Business Processes/Infrastructure!
42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!)
(450/8.)
43. “Design-mindfulness”/“aesthetic sensibility” is a requisite
for Every Hire—including waiters and waitresses in Fast Food
outlets and Housekeepers in hotels.
44. Gasp-worthy Design is as essential to “service
companies” as to “manufacturers.”
45. Gasp-worthy design can transform any “commodity,”
including ag!
Better By Design: Tom’s Design49
46. DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF
THE FIRST ORDER.
47. “Small” is no disadvantage in an Age of Creativity!
48. There is no such thing as a “National Design
Advantage” unless the current school system is Destroyed
& Re-imagined—to emphasize creativity and risk-taking and
acceptance of failure. (Design Mindfulness … the
suppression thereof … typically begins at Age 4.)
49.
How sweet it is!
(If your head is screwed on right.)
EXCELLENCE.
SYSTEMS.
DESIGN.
K.I.S.S.
450/8
Great design =
One-page
business plan
(Jim Horan)
Lisbon/New Biz:
Weeks
to …
Minutes
(!!!!)
First Steps: “Beauty Contest”!
1. Select one form/document:
invoice, airbill, sick leave policy,
customer returns claim form.
2. 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.
3. Re-invent!
4. Repeat, with a new selection,
every 15 working days.
“One bank is currently
claiming to … ‘leverage its global
footprint to provide effective financial
solutions for its customers by providing
a gateway to diverse markets.’”
—Charles Handy
“I assume that it is just
saying that it is there to
‘help its customers
wherever they are’.”
—Charles Handy
“Seek honest, minimalist management.
Look for companies run by a team that
explains things clearly and briefly. …
You can tell a lot about the firm by
reading an annual report or two. If
management can’t explain the
business in plain English, move
on to another firm. If you see
phrases like ‘creating knowledge-based
value in emerging markets’ … someone
is trying to pull the wool over your eyes,
you lazy Fool. Run.” —Seth Jayson, “Stocks for the
Lazy Investor,” The Motley Fool
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This
is accomplished by addressing the
half-formed needs in our customers’
heads. By uncovering these needs,
we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’
Sales are the inevitable
result.”
— Judy George, Domain Home Fashions
“No longer are we only an insurance
provider. Today, we also offer
our customers the products
and services that help them
achieve their dreams —
whether it’s financial security, buying
a car, paying for home repairs, or even
taking a dream vacation.” —Martin
Feinstein, CEO, Farmers Group
The Marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’ dreams.
Dreamketing: The art of telling stories
and entertaining.
Dreamketing: Promote the dream,
not the product.
Dreamketing: Build the brand around
the main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
Starbucks = Shaper
of Culture: “At our core,
we’re a coffee company,
but the opportunity we
have to extend the brand is
it’s
entertainment.”
beyond coffee;
—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ EMOTION
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
C
*Chief Dream Merchant
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness,
Friendship and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Convictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
Six Market Profiles
1. Adventures for Sale/ IBM-UPS
2. The Market for Togetherness, Friendship
and Love/ IBM-UPS
3. The Market for Care/ IBM-UPS
4. The Who-Am-I Market/ IBM-UPS
5. The Market for Peace of Mind/ IBM-UPS
6. The Market for Convictions/ IBM-UPS
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
“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
We stand facing the
fifth kind of society: the
Dream Society. … Future products will
computer.
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
EXCELLENCE.
SOUL II.
THE STORY.
“Storytelling
is the core
of culture.”
—Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
Best
story
wins!
Market Power =
Story Power
C
O*
*Chief Storytelling Officer
“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 to how we work with others.
Companies will thrive on
the basis of their stories
and myths.
Companies will need to
understand that their products are less important than their
stories.” —Rolf Jensen, Copenhagen Institute for Future Studies
EXCELLENCE.
VALUE-ADDED LADDER III.
ALL YOU NEED IS LOVE.
“Brands have
run out of
juice. They’re
dead.”
—Kevin Roberts/Saatchi & Saatchi
“Brands Are Out of Juice”
1. Brands are worn out from overuse.
2. Brands are no longer mysterious.
3. Brands can’t understand the new consumer.
4. Brands struggle with good old-fashioned
competition.
5. Brands have been captured by formula.
6. Brands have been smothered by creeping
conservatism.
Source: Lovemarks: The Future Beyond Brands, Kevin Roberts
Kevin Roberts:
Lovemarks!
“When I first suggested that Love was the
way to transform business, grown CEOs
blushed and slid down behind annual
accounts. But I kept at them. I knew it was
Love that was missing. I knew that Love
was the only way to ante up the emotional
temperature and create the new kinds of
relationships brands needed. I knew that
Love was the only way business could
respond to the rapid shift in control to
consumers.” —Kevin Roberts/Lovemarks
Brand …………………………………………………. Lovemark
Recognized by consumers ………………. Loved by People
Generic ………………………………………………… Personal
Presents a narrative ………………….. Creates a Love story
The promise of quality ……………… A touch of Sensuality
Symbolic ………………………………………………….. Iconic
Defined ………………………………………………….. Infused
Statement ………………………………………………….. Story
Defined attributes ……………………... Wrapped in Mystery
Values ………………………………………………………. Spirit
Professional …………………………... Passionately Creative
Advertising agency ………………………….. Ideas company
Source: Kevin Roberts, Lovemarks
“When we were working
through the essentials of a
Mystery
Lovemark,
was always at the top of the
list.”
—Lovemarks: The Future Beyond Brands, Kevin Roberts
“Lovemarks are
owned by the
people who love
them.”
—Lovemarks: The Future Beyond
Brands, Kevin Roberts
“Shareholders very seldom love the brands they
have invested in. And the last thing they want is an
intimate relationship. They figure this could warp
their judgment. They want measurability,
increasing returns (always) and no surprises
(ever). Imagine a relationship with someone like
that!
“No wonder so many brands lost the emotional
thread that had led them to their extraordinary
success and turned them instead into metricmunchers of the lowest kind. Watch for the sign:
HEADS, NOT HEARTS, AT WORK
HERE.” —Lovemarks: The Future Beyond Brands, Kevin Roberts
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)
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ ECSTASY
Lovemark
Dreams Come True
Spellbinding Experiences
Customer Success: Implemented
Gamechanging Solutions
Services
Goods
Raw Materials
C
O*
*Chief Lovemark Officer
Up,
Up,
Up,
Up
the Value-added Ladder.
Ladder.2008: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
New (4 of 7) Value-added “Ladder”:
Plays to Women’s Inherent Strengths!
Lovemark/F
Dreams Come True/F
Spellbinding Experiences/F
Gamechanging Solutions/F
Services/F
Goods/M
Raw Materials/M
EXCELLENCE.
DOES MATTER
MATTER?
“What Isn’t
Matter Is What
Matters”
—section title, Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
VA “Teaching Moment”
“Andy pointed to
a molding,
about halfway
up the wall …”
The Boot … and
Timberland
The Tomato/
Farmer … and
Campbell’s
Ladder.2007: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
EXCELLENCE.
NEW VALUE
EQUATION.
NEW “C-levels”.
C.E.O.
to
C.D.O.
C
*Chief
O*
Revenue
Officer
C
*Chief e
O*
Xperience
Officer
C
*Chief Dream Merchant
C
O*
*Chief Festivals Officer
C
*Chief Portal Impresario
C
W
M*
*Chief WikiWorld Maniac
C
O*
*Chief Conversations Officer
C
O*
*Chief Lovemark Officer
C
O*
*Chief Seduction Officer
C
O*
*Chief Storytelling Officer
O*
C
*Chief
Design
Officer
C
O*
*Chief talent acquisition Officer
C
O*
*Chief freaks acquisition Officer
C
O*
*Chief quest-meister
C
O*
*Chief Thrills Officer
C
O*
*Chief WOW Officer
*
C
o
Chief DESTRUCTION Officer
C
o*
*Chief Transcendence Officer
C
*Chief
O*
!
Officer
End
Part 4