Tom Peters’
Re-Imagine!
Business Excellence
in a Disruptive Age
Manchester/14.March.2003
Slides at …
tompeters.com
You must become an ignorant man again
And see the sun again with an ignorant eye
And see it clearly in the idea of it.
--Wallace Stevens/“Notes Toward a Supreme Fiction”
“If you don’t like
change, you’re
going to like
irrelevance even
less.” —General Eric Shinseki, Chief of
Staff, U. S. Army
I. NEW
BUSINESS.
NEW
CONTEXT.
“We are in a
brawl with
no rules.”
Paul Allaire
“Strategy meetings held
once or twice a year” to
“Strategy meetings
needed several times
a week.” –Meg Whitman, CEO, eBay
1. All Bets
Are Off.
“IT MAY SOMEDAY BE SAID THAT THE 21ST
CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and
profoundly dangerous kind of
organization—one that might be called
a ‘virtual state.’ On September 11 a virtual
state proved that modern societies are
vulnerable as never before.”—Time/09.09.2002
“The deadliest strength of America’s new adversaries
is their very fluidity, Defense Secretary Donald
Rumsfeld believes. Terrorist networks, unburdened by
fixed borders, headquarters or conventional forces, are
free to study the way this nation responds to threats
and adapt themselves to prepare for what Mr. Rumsfeld
is certain will be another attack. …
“ ‘Business as usual won’t do it,’ he said. His
answer is to develop swifter, more lethal ways to
fight. ‘Big institutions aren’t swift on their feet in
adapting but rather ponderous and clumsy and
slow.’ ”—The New York Times/09.04.2002
From:
To:
Weapon v.
Weapon
Org structure v.
Org structure
“The organizations we created have
become tyrants. They have taken
control, holding us fettered, creating
barriers that hinder rather than help
our businesses. The lines that we
drew on our neat organizational
diagrams have turned into walls
that no one can scale or penetrate
or even peer over.” —Frank Lekanne Deprez &
René Tissen, Zero Space: Moving Beyond Organizational Limits.
Eric Shinseki’s New Army
Flat.
Fast.
Agile.
Adaptable.
Light … But Lethal.
Talent/ “I Am An Army Of One.”
Info-intense.
Network-centric.
“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made
one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The
implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an
ineffective bombing campaign, and Washington was anguishing over whether
to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used
satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen
(much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures
to allow intelligence analysts and attack planners to work directly together.
Their favorite tool, incidentally, was instant messaging over a secure
network.”—Ned Desmond/“Broadband’s New Killer App”/Business 2.0/
OCT2002
NOKIA
Connecting
People
“Our entire facility is digital. No paper, no film, no
medical records. Nothing. And it’s all integrated—from
the lab to X-ray to records to physician order entry.
Patients don’t have to wait for anything. The
information from the physician’s office is in
registration and vice versa. The referring physician is
immediately sent an email telling him his patient has
shown up. It’s wireless in-house. We have 800
notebook computers that are wireless. Physicians can
walk around with a computer that’s pre-programmed. If
the physician wants, we’ll go out and wire their house
so they can sit on the couch and connect to the
network. They can review a chart from 100 miles
away.—David Veillette, CEO, Indiana Heart Hospital
(Healthleaders/12.2002)
“If early soldiers idealized Napoleon or
Patton, network-centric warriors
admire Wal*Mart, where point-of-salescanners share information on a near realtime basis with suppliers and also produce
data that is mined to help leaders develop
new strategic or tactical plans. Wal*Mart is
an example of translating information into
competitive advantage.”—Tom Stewart,
Business 2.0
2. The
Destruction
Imperative.
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
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
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
found that none of the long-term
survivors managed to outperform the
market. Worse, the longer companies
had been in the database, the worse
they did.”—Financial Times/11.28.2002
“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
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
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]
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
“Active mutators in placid
times tend to die off. They
are selected against.
Reluctant mutators in
quickly changing times are
also selected against.”
Carl Sagan & Ann Druyan,
Shadows of Forgotten Ancestors
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
“The secret of fast
progress is
inefficiency, fast and
furious and numerous
failures.”
Kevin Kelly
RM: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
“The Silicon Valley of
today is built less atop
the spires of earlier
triumphs than upon the
rubble of earlier
debacles.”—Newsweek/ Paul Saffo (03.02)
Jim & Tom.
Joined at the
hip.
Not.
Huh?
“Quiet, workmanlike, stoic
leaders bring about the big
transformations.”--JC
Pastels?
T. Paine/P. Henry/A. Hamilton/T. Jefferson/B. Franklin
A. Lincoln/U. S. Grant/W. T. Sherman
TR/FDR/LBJ/RR/JFK
M.L. King
C. de Gaulle
M. Gandhi
W. Churchill
M. Thatcher
Picasso
Mozart
Copernicus/Newton/Einstein
J. Welch/L. Gerstner/L. Ellison/B. Gates/S. Ballmer/S. Jobs/S.
McNealy
A. Carnegie/J. P. Morgan/H. Ford/J.D. Rockefeller/T. A. Edison
“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”
“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)
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be
known as the ‘King of
the Tinkerers.’ ”
CEO, large financial services company
(New York, 5-99)
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
The [New] Ge Way
DYB.com
II. NEW
BUSINESS.
NEW TECH.
3. The White
Collar Revolution
& the Death of
Bureaucracy.
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
E.g. …
Jeff Immelt: 75% of “admin, back
room, finance” “digitalized” in
years.
Source: BW (01.28.02)
IBM’s Project
eLiza!*
* “Self-bootstrapping”/ “Artilects”
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
Deep Blue Redux*: 2,240
EKGs
… 1,120 heart attacks.
Hans Ohlin
: 620.
Lars Edenbrandt’s
software: 738.
(50 yr old chief of coronary care, Univ of
Lund/SW)
*Only this time it matters!
“Unless mankind redesigns
itself by changing our DNA
through altering our genetic
makeup, computergenerated robots will take
over the world.” – Stephen
Hawking, in the German magazine Focus
4. IS/ IT/
Web … “On the
Bus” or “Off the
Bus.”
square feet
Impact No. 1/ Logistics &
Wal*Mart …
Dell … Amazon.com …
Autobytel.com …
FedEx … UPS … Ryder
… Cisco … Etc. … Etc.
… Ad Infinitum.
Distribution:
$400.
Wal*Mart: 13%.
Autobytel:
Source: BW(05.13.2002)
WebWorld = Everything
Web as a way to run your business’s 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
“Ebusiness is about rebuilding
the organization from the
ground up. Most companies today
are not built to exploit the Internet.
Their business processes, their
approvals, their hierarchies, the
number of people they employ … all of
that is wrong for running an
ebusiness.”
Ray Lane, Kleiner Perkins
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
“There’s no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much
practice,” said the Queen. “When I was
your age, I always did it for half an
hour a day. Why, sometimes I’ve
believed as many as six impossible
things before breakfast.”
Lewis Carroll
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
“Don’t rebuild.
Reimagine.”
The New York Times Magazine on the future of
the WTC space in Lower Manhattan/09.08.2002
“Suppose—just suppose—that the Web is a new world
we’re just beginning to inhabit. We’re like the earlier
European settlers in the United States, living on the
edge of the forest. We don’t know what’s there and we
don’t know exactly what we need to do to find out: Do
we pack mountain climbing gear, desert wear, canoes,
or all three? Of course while the settlers may not have
known what the geography of the New World was
going to be, they at least knew that there was a
geography. The Web, on the other hand, has no
geography, no landscape. It has no distance. It has
nothing natural in it. It has few rules of behavior and
fewer lines of authority. Common sense doesn’t hold
here, and uncommon sense hasn’t yet emerged.”
David Weinberger, Small Pieces Loosely Joined
Case:
CRM
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“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 Nordström and Jonas Ridderstråle,
Funky Business
“Parents, doctors, stockbrokers,
even military leaders are starting to
lose the authority they once had.
There are all these roles premised on
access to privileged information. …
What we are witnessing is a
collapse of that advantage,
prestige and authority.”
Michael Lewis, next
“CRM has, almost
universally, failed
to live up to
expectations.”
Butler Group (UK)
CGE&Y (Paul Cole): “Pleasant
“Systemic
Opportunity.” “Better job
of what we do today” vs. “Rethink overall
enterprise strategy.”
Transaction” vs.
Here We Go Again: Except It’s Real This Time!
Bank online: 24.3M (10.2002); 2X Y2000.
Wells Fargo: 1/3rd; 3.3M; 50% lower attrition
rate; 50% higher growth in balances than offline; more likely to cross-purchase; “happier and
stay with the bank much longer.”
B of A: 4M of 15M (“… way beyond the early
adopters”).
Source: The Wall Street Journal/10.21.2002
III. NEW
BUSINESS. NEW
VALUE
PROPOSITION.
5. The “PSF
Solution”:
The Professional
Service Firm Model.
So what will be the
Basic Building
Block of the
New Org?
Every job done
in W.C.W. is also
done “outside”
…for profit!
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
TP to NAPM:
You are the …
Rock Stars
of the
B2B Age!
“ Daddy,
what do you do?”
Sarah:
“I’m a ‘cost
center.’ ”
Daddy:
Message: You are
Re-invention
Evangelists!
TP to HRMAC:
You are the …
Rock Stars
of the Age of
Talent!
DD$21M
eHR*/PCC**
*All HR on the Web
**Productivity Consulting Center
Source: E-HR: A Walk through a 21st Century HR
Department, John Sullivan, IHRIM
Model PSF …
(1) Translate ALL departmental
activities into discrete
W.W.P.F. “Products.”
(2) 100% go on the Web.
(3) Non-awesome are
outsourced (75%??).
(4) Remaining “Centers of
Excellence” are retained &
leveraged to the hilt!
“Typically in a mortgage company or
financial services company, ‘risk
management’ is an overhead, not a revenue
center. We’ve become more than that.
We pay for ourselves, and
we actually make money
for the company.”
—Frank Eichorn,
Director of Credit Risk Data Management Group, Wells Fargo
Home Mortgage (Source: sas.com)
6. The Heart of the Value
Added Revolution:
PSFs Unbound/ The
“Solutions
Imperative.”
Base Case: The
Sameness Trap
“While everything may
it is also
increasingly
the same.”
be better,
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, 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
“The Internet is the most effective profitkiller on earth … it stimulates a TRUE
FREE MARKET; and a real free market is
the most dangerous of marketplaces for
companies selling the SAME OLD STUFF.
To those with COURAGE, free markets are
great—they help kill off the deadwood
competitors who don’t have the courage
to change—making way for them to
LEVERAGE their DRAMATIC DIFFERENCE
into profitable growth.”—Doug Hall
“This is an essay about what it takes to create and sell
something remarkable. It is a plea for originality, passion, guts
and daring. You can’t be remarkable by following someone else
who’s remarkable. One way to figure out a theory is to look at
what’s working in the real world and determine what the
successes have in common. But what could the Four Seasons
and Motel 6 possibly have in common? Or Neiman-Marcus and
Wal*Mart? Or Nokia (bringing out new hardware every 30 days
or so) and Nintendo (marketing the same Gameboy 14 years in
a row)? It’s like trying to drive looking in the rearview mirror.
The thing that all these companies have in common is that they
have nothing in common. They are outliers. They’re on the
fringes. Superfast or superslow. Very exclusive or very cheap.
Extremely big or extremely small. The reason its so hard to
follow the leader is this: The leader is the leader precisely
because he did something remarkable. And that remarkable
thing is now taken—so it’s no longer remarkable when you
decide to do it.” —Seth Godin, Fast Company/02.2003
The
Day!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
consulting business!
“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett-Packard
Systems
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).
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli, GE Power Systems
“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:
Customer
Satisfaction
versus
Customer
Success
E.g. …
UTC/Otis + Carrier:
boxes to “integrated
building systems”
Units of
“Coolth”
Leased AC:
“A little-known fact: Siemens is
now the world’s largest application
service provider* to the health
business. Digitally stored X rays,
recordkeeping, the cameras that
guide surgeons in the operating
theater—all run on Siemens
software” —Forbes/09.16.2002
*E.g.: “Siemens is giving Health South an all-digital ‘hospital of the future.’ ”
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.”
ecompany.com/06.01 (E.g., UPS Logistics
manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
“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
Omnicom:
57%
(of
$6B) from marketing services
(1) 108X5 to
8X1/ eLiza/ 100sf. (2)
Dept. to PSF/ WWPF. (3)
V.A. via PSFs Unbound/
“Solutions”/ “Customer
Success.”
Core Logic:
IV. NEW
BUSINESS. NEW
BRAND.
7. A World of
Scintillating/
Awesome/ WOW
“Experiences.”
“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
“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
“Guinness as a brand
is all about community.
It’s about bringing people
together and sharing
stories.”—Ralph Ardill, Imagination, in re
Guinness Storehouse
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
transportation.”
Bob Lutz:
Source: NYT 10.19.01
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
“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 &
Experiences: Female
dominance
8. “It” all adds up
to … THE
BRAND.
The Heart of
Branding …
“WHO ARE
WE?”
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voilà, you’re on course. They are
wrong. The task is much bigger. It is about fulfilling our
potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT
DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER
THE WORLD IS ACTUALLY UNIQUE? The brand
has to give of itself, the company has to give of
itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not –
you want to be … UNIQUE … NOW.”
Jesper Kunde, Unique now ... or never
“WHAT’S
OUR
STORY?”
“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
“Apple opposes, IBM
solves, Nike exhorts,
Virgin enlightens, Sony
dreams, Benetton
protests. … Brands are
not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or
2 > 3 or 4/“One Great Thing.”
Source #1: Personal Passion)
2ND Law: REAL REASON TO BELIEVE (Stand &
Deliver!)
3RD Law: DRAMATIC
DIFFERENCE (Execs Don’t Get It.)
Source: Jump Start Your Business Brain, Doug Hall
“WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DRAMATIC
DIFFERENCE TO THE
CLIENT ?”
Message: REAL Branding is personal.
REAL Branding is integrity. REAL
Branding is consistency & freshness.
REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL
Branding is why I/you/we [all] get out of
bed in the morning. REAL Branding
can’t be faked. REAL Branding is
a systemic, 24/7, all departments,
all hands affair.
“You do not merely want to
be the best of the best. You
want to be considered
the only ones who do
what you do.”
Jerry Garcia
“A great company
is defined by the
fact that it
is not compared
to its peers.”
Phil Purcell, Morgan Stanley
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
V. NEW BUSINESS.
NEW WORK.
9. Toward Work
that Matters: The
WOW Project.
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Language
matters! Wow!
BHAG! “Takes
your breath
away!”
“Let’s make a
dent in the
universe.”
Steve Jobs
“Astonish me!” / S.D.
“Build something great!” /
H.Y.
“Immortal!” / D.O.
Your Current Project?
1. Another day’s work/Pays the
rent.
4. Of value.
7. Pretty Damn Cool/Definitely
subversive.
10. WE AIM TO CHANGE THE
WORLD. (Insane!/Insanely
Great!/WOW!)
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
10. WOW
Projects for the
“Powerless”: A
Surefire Recipe.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
F2F!/K2K!/
1@T/R.F!A.*
*Freak to Freak/ Kook to Kook/ One at a Time/ Ready.Fire!Aim.
And …
K2KK*
S2SS**
*Kook to Kooky Kustomer
**Skunk to Scintillating Supplier
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2002
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on “Most Admired Global Corporations”
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
11. Boss Work:
Demos, Heroes,
Stories … Or: Starting
a WOW Projects
Epidemic.
“Ordering”
Systemic Change
is a Stupid Waste
of Time!
Premise:
Demos!
Heroes!
Stories!
“Lead
Frogs”
Leapfrog Group:
Demo = Story
“A key – perhaps the key –
to leadership is the
effective communication
of a story.”
Howard Gardner, Leading Minds: An Anatomy of Leadership
“Some people look for
things that went wrong and
I look for
things that went right
and try to build on
them.”
try to fix them.
—Bob Stone/ Mr.Rego/ Lessons from an
Uncivil Servant
REAL Org Change: Demos & Models (“Model
Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned
to reinvent gov’t”)/ Stories & Storytellers (Props!)/
Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/
Cheerleaders & Recognition (Pos>>Neg, Volume)/
New Language (Hot/Emotional/WOW)/ Seekers
(networking mania)/ Protectors/ Support Groups/
End Runs—“Pull Strategy” (weird alliances, weird
customers, weird suppliers, weird alumnae-JKC)/ Field
“Real People” Focus (3 COs) (long way away)/
Speed (O.O.D.A. Loops—act before the “bad guys” can react)
C.f., Bob Stone, Lessons from an Uncivil Servant
VI. NEW
BUSINESS. NEW
YOU.
12. Re-inventing the
Individual: Brand
You/ You Inc./ Free
Agent Nation
(Or Else.)
“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 SurvivalSkillsKit2003
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Sam’s
Secret #1!
Minimum New Work SurvivalSkillsKit2003
Mastery
Rolodex Obsession (vert. to horiz. “loyalty”)
Entrepreneurial Instinct
CEO/Leader/Businessperson/Closer
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
“My ancestors were printers in
Amsterdam from 1510 or so until
1750, and
during that
entire time they didn’t
have to learn anything
new.”
Peter Drucker, Business 2.0 (08.22.00)
“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)
3 Weeks in May
“Training” & Prep: 187
“Work”: 41
(“Other”: 17)
1%
vs.
367%
Divas do it. Violinists do it.
Sprinters do it. Golfers do it.
Pilots do it. Soldiers do it.
Surgeons do it. Cops do it.
Astronauts do it. Why don’t
businesspeople do it?
Edward Jones’ Training Machine*
146 hours/employee/year
New hires: 4X avg.
3.8% of payroll
* #1, “The 100 Best Companies To Work
For”/Fortune/01.2003
Invent. Reinvent. Repeat.
Source: HP banner ad
13. Boss Job One:
The Talent
Obsession.
Age of Agriculture
Industrial Age
Age of Information Intensification
Age of Creation Intensification
Source: Murikami Teruyasu, Nomura Research Institute
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
Talent!
Tina Brown: “The
first thing
to do is to hire enough
talent that a critical mass
of excitement starts to
grow.”
Source: Business2.0/12.2002-01.2003
Brand =
Talent.*
*Duh.
The Talent Ten
1. Obsession
P.O.T.* = All
Consuming
*Pursuit of Talent
Model
25/8/53
Sports Franchise GM*
*48 = $500M
“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
PARC’s Bob Taylor:
“Connoisseur
of Talent”
Les Wexner: From
sweaters to people!
2. Greatness
Only The Best!
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
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
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
4. Pay
Fork Over!
“Top performing companies are
two to four times more likely
than the rest to pay
what
it takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
5. Youth
Grovel Before
the Young!
“Why focus on these late teens and twentysomethings? Because they are the first
young who are both in a position to
change the world, and are actually
doing so. … For the first time in history,
children are more comfortable, knowledgeable
and literate than their parents about an
innovation central to society. … The Internet has
triggered the first industrial revolution in history
to be led by the young.”
The Economist [12/2000]
8 Minutes*
—Dr. Sugata Mira, NIIT/ New Delhi/
1999**
*Ignorance to Surfing
**And then there’s oya yubi sedai, the “thumb generation”
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
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
7. Women
Born to Lead!
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
Women’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
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more
questions in a conversation? Who is a better
listener? Who has more interest in communication
skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’
list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why
Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
“Investors are looking more and more
for a relationship with their financial
advisers. They
want someone
they can trust, someone who
listens. In my experience, in general,
women may be better at these
relationship-building skills than are
men.”
Hardwick Simmons, CEO, Prudential Securities
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
Opportunity!
U.S.
M.Mgt.
41%
T.Mgt.
4%
Peak Partic. Age 45
% Coll. Stud.
52%
G.B. E.U. Ja.
29% 18% 6%
3%
2%
<1%
22
27
19
50% 48% 26%
Source: Judy Rosener, America’s Competitive Secret
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
9. Opportunity
Make It an
Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
Talent
Department
People Department
Center for Talent Excellence
Seriously Cool People Who Recruit
& Develop Seriously Cool People
Etc.
“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”
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
MantraM3
Talent = Brand
What’s your company’s …
Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
Addenda: A
Word about
Education
J. D. Rockefeller’s General Education Board
(1906):
“In our dreams people
yield themselves with
perfect docility to our
molding hands. … The task is
simple. We will organize children and teach
them in a perfect way the things their fathers
and mothers are doing in an imperfect way.”
John Taylor Gatto, A Different Kind of Teacher
“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
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
VII. NEW BUSINESS:
(NEW) BRAND
INSIDE RULES
Brand Inside Rules!
“I came to see in my time
at IBM that culture isn’t
just one aspect of the
game—it is the game.” —Lou
Gerstner, Who Says Elephants Can’t Dance?
Brand Inside Rules!
“If I could have chosen not to tackle
the IBM culture head-on, I probably
wouldn’t have. My bias coming in was
toward strategy, analysis and
measurement. In comparison,
changing the attitude and behaviors of
hundreds of thousands of people is
very, very hard.” —Lou Gerstner, Who Says
Elephants Can’t Dance?
14. THINK
WEIRD … the HVA/
High Value Added
Bedrock.
The
High Standard
Deviation
Enterprise.
THINK WEIRD:
“We are crazy. We should do
something when people say it is
If people say
something is ‘good’, it
means someone else is
already doing it.”
‘crazy.’
Hajime Mitarai, Canon
Saviors-in-Waiting
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
“Generally, disruptive technologies
underperform established
established products in
mainstream markets. But they have
other features that a few fringe
(and generally new) customers
value.”
Clayton Christensen, The Innovator’s Dilemma
“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
W.I.W?
20 of 26
7 of top 10*
*P&G: Declining domestic sales
in 20 of 26 categories; 7 of top 10
(The “billiondollar” problem.)
categories.
Source: Advertising Age 01.21.2002/BofA Securities
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
advantage.”
Source: John-Marie Dru, Disruption
Account planning
has become “focus
group balloting.”
—Lee
Clow
“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
Ways to Raise a Purple Cow
Think small. One vestige of the TVindustrial complex is a need to think
mass. If it doesn’t appeal to everyone,
the thinking goes, it’s not worth it.
Think of the smallest conceivable
market—and describe a product that
overwhelms it with remarkability. Go
from there.
Source: Seth Godin, Fast Company (02.2003)
“HAVE MBAs KILLED OFF MARKETING?
Prof
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?”
COMPETITORS: “The
best swordsman
in the world doesn’t need to fear
the second best swordsman in the
world; no, the person for him to be afraid of is
some ignorant antagonist who has never had a
sword in his hand before; he doesn’t do the
thing he ought to do, and so the expert isn’t
prepared for him; he does the thing he ought not
to do and often it catches the expert out and
ends him on the spot.”
Mark Twain
Employees: “Are there
enough weird
people in the lab these
days?”
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
Top-performing Companies
“Extremely contentious
boards that regard
dissent as an obligation
and that treat no subject
as undiscussable.”
—Jeffrey
Sonnenfeld, Yale School of Management
We become
who we hang
out with!
Big Idea/s
V.C.
GM
Portfolio
Roster
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
Advice to Corporate Leaders: “Consider the
metaphor of the windmill: You can harness raw
power but you can’t control it. … Hire artists,
clowns, or other disrupters to come in and
challenge your corporate environment. … Hire a
corporate anthropologist to analyze how tolerant
your organization is of deviants and other
innovators. … Once the anthropologist
leaves, hire a shaman to drive out the
evil spirits of conformity. …”
Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
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
Believers.)
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.
VIII. NEW
BUSINESS.
NEW
MARKETS.
15. Trends I:
Women
Roar.
Women & the
Marketspace.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%
D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
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
1970-1998
Men’s median income: +0.6%
Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
Business Purchasing Power
Purchasing mgrs. & agents: 51%
HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
$4.8T > Japan
9M/27.5M/$3.6T
> Germany
2000-2010
55-64: 48%; 25-54: 2%
65+/2001: M, 14.6M;
F, 20.5M
Source: Martha Barletta, Marketing to Women
Yeow!
1970 … 1%
2002 …
50%
OPPORTUNITY
NO.
1!
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.”
“He simply wants the transaction
to take place. She’s interested in
creating a relationship. Every place
women go, they make
connections.”
“Women speak and hear a language of
connection and intimacy, and men
speak and hear a language of status
and independence. Men communicate
to obtain information, establish their
status, and show independence.
Women communicate to create
relationships, encourage interaction,
and exchange feelings.”
Judy Rosener, America’s Competitive Secret
“I only really understand
myself, what I’m really thinking
and feeling, when I’ve talked it
over with my circle of female
friends. When days go by
without that connection, I feel
like a radio playing in an empty
room.”
Anna Quindlen
“When a woman is upset,
she talks emotionally to
her friends; but an upset
man rebuilds a motor or
fixes a leaking tap.”
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps
“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
Salespeople
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)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“It is obvious to a woman when
another woman is upset, while a man
generally has to physically witness
tears or a temper tantrum or be
slapped in the face before he even has
a clue that anything is going on. Like
most female mammals, women are
equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“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
Senses
Vision: Men, focused; Women,
peripheral.
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
cohere.*
*Redwood (UK)
Storytelling: Men start
with the headline.
Women start with the
context.
Source: Martha Barletta, Marketing to Women
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
What If …
“What if ExxonMobil or Shell dipped into their
credit card database to help commuting women
interview and make a choice of car pool
partners?”
“What if American Express made a concerted
effort to connect up female empty-nesters
through on-line and off-line programs, geared to
help women re-enter the workforce with today’s
skills?”
EVEolution
“Women don’t buy
They
join them.”
brands.
EVEolution
Not
!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
Psssst! Wanna
see my “porn”
collection?
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
Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
16;
(94% = 272)
“Please … just
one couch or
chair where my feet
hit the ground!”
—Owner,
5 furniture stores, UK
Stupid!
Stupid: “Amazing, now that I
think about it. A bunch of
guys --developers, architects,
contractors, engineers,
bankers--sitting around
designing shopping centers.
And the ‘end users’ will be
overwhelmingly women!”
“Customer is King”:
4,440
“Customer is Queen”:
29
Source: Steve Farber/Google search/04.2002
Notes to the CEO
--Women are not a “niche”; so get this out of
the “Specialty Markets” group.
--The competition is starting to catch on.
(E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube,
Charles Schwab, Citigroup, Aetna.)
--If you “dip your toes in the water,” what makes
you think you’ll get splashy results?
--Bust through the walls of the corporate silos.
--Once you get her, don’t let her slip away.
--Women ARE the long run!
Source: Martha Barletta, Marketing to Women
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
4. Women buy lotsa stuff.
5. WOMEN BUY A-L-L THE STUFF.
6. Women’s Market = Opportunity No. 1.
7. Men are (STILL) in charge.
8. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
9. Women’s Market = Opportunity No. 1.
10. NO SHIT.
16. Trends II:
Boomer
Bonanza/
Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
50+
$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
Yorker/04.01.2002)
Read This!
Carol Morgan &
Doran Levy,
Marketing to the
Mindset of Boomers
and Their Elders
“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
“Households headed by someone
40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The
mature market is the dominant
market in the U.S. economy,
making the majority of
expenditures in virtually every
category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
“Focused on assessing the
marketplace based on lifetime
value (LTV), marketers may
dismiss the mature market as
headed to its grave. The reality is
that at 60 a person in the U.S. may
enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“While the average American age
12 or older watched at least five
movies per year in a theater, those
40 and older were the most
frequent moviegoers, viewing 12
or more a year.”—Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers and Their Elders
“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
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
IX. NEW BUSINESS.
NEW LEADERSHIP.
17. The Passion
Imperative:
Leadership
The
The Basic
Premise.
1. Leadership Is a …
Mutual
Discovery
Process.
“I don’t
know.”
Leaders-Teachers Do Not “Transform People”!
Instead leaders-mentors-teachers (1) provide a
context which is marked by (2) access to a luxuriant
portfolio of meaningful opportunities (projects) which
(3) allow people to fully (and safely, mostly—caveat: “they”
don’t engage unless they’re “mad about something”) express
their innate curiosity and (4) engage in a vigorous
discovery voyage (alone and in small teams, assisted by an
extensive self-constructed network) by which those people
(5) go to-create places they (and their mentors-teachersleaders) had never dreamed existed—and then the
leaders-mentors-teachers (6) applaud like hell, stage
“photo-ops,” and ring the church bells
100 times to commemorate the bravery of their
“followers’ ” explorations!
The
Leadership
Types.
2. Great Leaders on Snorting
Steeds Are Important – but
Great Talent
Developers (Type I
Leadership) are the Bedrock
of Organizations that Perform Over
the Long Haul.
25/8/53*
(*Damn it!)
3. But Then Again, There
Are Times When This
“Cult of Personality”
(Type II Leadership) Stuff
Actually Works!
“A leader is a
dealer in
hope.”
Napoleon
(+TP’s writing room pics)
4. Find the
“Businesspeople”!
(Type III Leadership)
I.P.M.
(Inspired Profit
Mechanic)
5. All Organizations
Need the Golden
Leadership
Triangle.
The Golden Leadership
Triangle: (1) CreatorVisionary … (2) Talent
Fanatic-Mentor-V.C. … (3)
Inspired Profit Mechanic.
6. Leadership Mantra
#1: IT
ALL
DEPENDS!
Renaissance Men
are … a snare, a
myth, a delusion!
7. The Leader Is
Rarely/Never the
Best Performer.
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.
The
Leadership
Dance.
8. Leaders …
SHOW UP!
“The first and greatest
imperative of command
is to be present in
person. Those who
impose risk must be
seen to share it.” —John
Keegan, The Masks of Command
9. Leaders …
LOVE the
MESS!
“If things seem
under control,
you’re just not
going
fast enough.”
Mario Andretti
10. Leaders
The Kotler Doctrine:
1965-1980: R.A.F.
(Ready.Aim.Fire.)
1980-1995: R.F.A.
(Ready.Fire!Aim.)
1995-????: F.F.F.
(Fire!Fire!Fire!)
11. Leaders
Re
-do.
“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
“If it works,
it’s obsolete.”
—Marshall McLuhan
12. BUT … Leaders
Know When to
Wait.
Tex Schramm:
The
“too hard”
box!
13. Leaders Are …
Optimists.
Hackneyed but none the less
LEADERS SEE
CUPS AS “HALF
FULL.”
true:
“[Ronald
Reagan] radiated an
almost transcendent
happiness.”
Half-full Cups:
Lou Cannon, George (08.2000)
14. Leaders …
DELIVER!
“Leaders don’t
‘want to’ win.
Leaders ‘need
to’ win.”
#49
“It is no use saying ‘We
are doing our best.’You
have got to succeed in
doing what is
necessary.” —WSC
“When assessing candidates, the first
thing I looked for was energy and
enthusiasm for execution. Does she
talk about the thrill of getting things
done, the obstacles overcome, the role
her people played—or does she keep
wandering back to strategy or
philosophy?” —Larry Bossidy,
Honeywell/AlliedSignal, in Execution
15. BUT …
Leaders Are
Realists/Leaders
Win Through
LOGISTICS!
The “Gus
Imperative”!
16. Leaders
FOCUS!
“To
Don’t ”
List
17. Leaders …
Set CLEAR
DESIGN SPECS.
Danger:
S.I.O.
(Strategic
Initiative Overload)
1@T: (1) Neutron
JackWorld/
Jack. (Banish bureaucracy.) (2) “1, 2
or out” Jack. (Lead or leave.) (3)
“Workout” Jack. (Empowerment,
GE style.) (4) 6-Sigma Jack. (5)
Internet Jack. (Throughout)
TALENT JACK!
18. Leaders …
Send V-E-R-Y
Clear Signals About
Design Specs!
Ridin’ with Roger: “What
have
you done to
DRAMATICALLY
IMPROVE quality in the
last 90 days?”
It’s
Relationships,
Stupid.
19. Leaders
Trust in
TRUST!
Credibility
If It Ain’t Broke
… Break It.
20. Leaders …
FORGET!/
Leaders …
DESTROY!
Cortez!
Leaders “dump
the
ones who brung
’em” —Nokia, HP, 3M,
PerkinElmer, Corning, etc.
21. BUT … Leaders
Have to Deliver, So They
Worry About “Throwing
the Baby Out with the
Bathwater.”
“Damned If You
Do, Damned If You
Don’t, Just Plain
Damned.”
Subtitle in the chapter, “Own Up to the Great Paradox: Success
Is the Product of Deep Grooves/ Deep Grooves Destroy
Adaptivity,” Liberation Management (1992)
22. Leaders …
HONOR THE
USURPERS.
Saviors-in-Waiting
Disgruntled Customers
Upstart Competitors
Rogue Employees
Fringe Suppliers
Wayne Burkan, Wide Angle Vision
23. Leaders Make
[Lotsa] Mistakes
– and MAKE NO
BONES ABOUT IT!
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
“No matter. Try
again. Fail
again. Fail
better.” —Samuel Beckett
“Success is the ability
to go from failure to
failure without losing
your enthusiasm.”
Winston Churchill
(as quoted by John Peterman)
24. Leaders Make …
BIG MISTAKES!
“Reward
excellent
failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec (and, de facto, Jack)
Create.
25. Leaders Know that
THERE’S MORE TO LIFE
THAN “LINE EXTENSIONS.”
Leaders Love to CREATE NEW
MARKETS.
No one ever made it
into the Business Hall
of Fame on a record of
“line extensions.”
26. Leaders … Make
Their Mark /
Leaders … Do Stuff
That Matters
“I never, ever thought of myself
I was
interested in creating
things I would be
proud of.” —Richard Branson
as a businessman.
Legacy!
CEO Assignment2002 (Bermuda):
“Please leap forward to 2007, 2012, or
2022, and write a business history of
What will have
been said about your
company during your
tenure?”
Bermuda.
Ah, kids: “What is your vision for
the future?” “What have you
accomplished since your first
book?” “Close your eyes and
imagine me immediately doing
something about what you’ve
just said. What would it be?”
“Do you feel you have an
obligation to ‘Make the world a
better place’?”
27. Leaders Push Their
W-a-y Up the
Value-added/
Intellectual Capital
Chain
Organizations
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
28. Leaders
LOVE the
New Technology!
square feet
29. Needed? Type IV
Leadership:
Technology
Dreamer-True
Believer
The Golden Leadership
Quadrangle: (1) CreatorVisionary … (2) Talent
Fanatic-Mentor-V.C. … (3)
Inspired Profit Mechanic. (4)
Technology Dreamer-True
Believer
Talent.
30. When It Comes to
TALENT …
Leaders Always Swing
for the Fences!
Message: Some
people are
better than other
people. Some people
are a helluva lot
better than other
people.
31. Leaders
“Manage” Their
EVP/Internal
Brand Promise.
MantraM3
Talent = Brand
32. Leaders LOVE
RAINBOWS – for
Pragmatic Reasons.
“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
Passion.
33. Leaders …
Out Their
PASSION!
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
34. Leaders Know:
ENTHUSIASM
BEGETS
ENTHUSIASM!
BZ: “I am a …
Dispenser of
Enthusiasm!”
35. Leaders Are …
in a Hurry
The Urgency
Factor: LEADERS
… have a distorted
sense of time. (E.g.:
Rummy thinks he asked months ago … it was
the day before yesterday.)
The “Job” of
Leading.
36.
Leaders Know It’s
ALL SALES ALL
THE TIME.
If you don’t LOVE
SALES … find
another life. (Don’t pretend
TP:
you’re a “leader.”) (See TP’s
The Project50.)
37. Leaders
LOVE
“POLITICS.”
If you don’t LOVE
POLITICS … find
another life. (Don’t pretend
TP:
you’re a “leader.”)
38.
But … Leaders Also
Break a Lot of
China
If you’re not
pissing people off,
you’re not making
a difference!
39. Leaders
Give …
RESPECT!
“It was much later that I realized Dad’s
secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids
in Spring Valley who shined shoes the
same way he talked and listened to a
bishop or a college president. He
was
seriously interested in who you
were and what you had to say.”
Sara Lawrence-Lightfoot, Respect
40. Leaders Say
“Thank
You.”
“The two most powerful things
a kind
word and a
thoughtful
gesture.”
in existence:
Ken Langone, CEO, Invemed Associates [from Ronna
Lichtenberg, It’s Not Business, It’s Personal]
“The deepest human
need to
be appreciated.”
need is the
William James
41. Leaders
Are …
Curious.
The Three Most
Important Letters …
TP/08.2001:
42. Leadership
Is a …
Performance.
“It is necessary for the
President to be the
No. 1
actor.”
nation’s
FDR
43.
Leaders …
Are
The Brand
The BRAND lives (OR
DIES) in the “minutiae”
of the leader’s momentto-moment actions.
44. Leaders …
GREAT
STORY!
Have a
Leaders don’t just make products
and make decisions.
Leaders make
meaning.
– John Seeley Brown
Introspection.
45. Leaders …
Enjoy Leading.
“Warren, I know you
want to ‘be’
president. But do
you want to ‘do’
president?”
46. Leaders …
KNOW
THEMSELVES.
Individuals (would-be leaders)
cannot engage in a
liberating mutual discovery
process unless they are
comfortable with their
own skin. (“Leaders” who are not
comfortable with themselves become petty
control freaks.)
47. But … Leaders
have
MENTORS.
Upon
having the Leadership
Mantle placed upon thine
head, thou shalt never
hear the unvarnished
truth again!*
The Gospel According to TP:
(*Therefore, thy needs one faithful
compatriot to lay it on with no jelly.)
48. Leaders …
Take Breaks.
Zombie!
Zombie!
Zombie!
Zombie!
The End
Game.
49. Leaders
???:
“Hire smart – go
bonkers – have grace –
make mistakes – love
technology – start all
over again.”
“LEADERS NEED TO
BE THE ROCK OF
GIBRALTAR ON
ROLLER BLADES”
50. Leaders Know
WHEN TO
LEAVE!
Thank You