Distinct or … Extinct
Tom Peters Seminar2000
Financial Service Corporation
2000 National Education &
Business Conference
Atlanta
05 October 2000
Summer 2000 …
KOA wires up!
When Mike Charles
gets lonely, who
does he talk to …
Mike Charles. Stanford history
prof. Whirlpool fridge. Out
Tap keypad on
door. Webvan delivers in
hours. Next, he sends his
washer an email …
of 2% milk.
Source: Business Week (09.00)
N.W.O./Auto Mirror per Gentex: Portal
for Wireless, Internet, Navigation, Etc.
Cell phones, Voice
mail, email,
Internet access
NOW THAT’S B-I-G!
“The period 2000-2002 will bring
the single greatest change in
worldwide economic and
business conditions since we
came down from the trees.”
David Schneider & Grady Means,
MetaCapitalism
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Forget > Learn
“The problem is never
how to get new,
innovative thoughts into
your mind, but how to
get old ones out.”
Dee Hock
The [New] Ge Way
DYB.com
Brand Inside
Brand Organization:
Lean, Linked,
Electronic & Malleable
And Now the Equivalent …
White Collar
Revolution!
Progressive
“We don’t sell insurance anymore.
We sell speed.” – Peter Lewis
Digital cameras, wireless Net links,
etc.: SOME CLAIMS PAID
WITHIN 20 MINUTES!
Source: Business Week (09.00)
Advance Paradigm
Data on 165,000,000 prescriptions per
year; docs and insurers have access to
records
Reduces med errors; saves $2.88 per
scrip [prescribing errors]; docs save
$14,000 per year in review time
Rev in ’99: $2B; $477M in ’98
Source: Business Week (09.00)
Brand Inside
Brand Talent: The
Great War for Talent
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN
THE WORLD TO HEAD EACH
INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia Pacific
profitability from $25 million to $80 million in 2
years.”
Ed Michaels, War for Talent (05.17.00)
Women and neweconomy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their appearance?
Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more
questions in a conversation? Who is a better
listener? Who has more interest in communication
skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who
has better intuition? Who works with a longer ‘to do’
list? Who enjoys a recap to the day’s events?
Who is better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful
Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (May2000)
The Cracked Ones Let in the Light
“Our business needs a massive
transfusion of talent, and talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
Axiom: Never hire
anyone without an
aberration in their
background. (Find the
One Ton Cookie Man!)
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Outside
The Death Knell
for Ordinary:
Pursuing
Difference!
In the Beginning …
“The audit has
become a
commodity.”
Big 5 audit partner to TP
“The ‘surplus society’ has a surplus of
similar companies, employing
similar people, with similar
educational backgrounds, working in
similar jobs, coming up with similar
ideas, producing similar things, with
similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.30.2000/1221AM:
2,461,940,629
www.cyveillance.com
10.05.2000/0506AM:
2,726,431,407
36 days, 4 hours, 10 minutes …
+264,490,778
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders
routed to supplier who ships direct
Gross margin: 65%; Net margin: 28%
Savings in service and support from
customer self-management: $500M
Enron: $400B in annual on-line
trading transactions. [50% total
bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset
transactions [80% of trades]
[Transition to e.Schwab: Rev. fell,
then quickly doubled]
COMMUNITY
SERVICES!/
CUSTOMER
CONTROL!
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
Welcome to
D.I.Y. Nation!
“Changes in business processes will
emphasize self service. Your costs as
a business go down and
perceived service goes up
because customers are conducting it
themselves.”
Ray Lane, Oracle
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control
of my universe!
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
I Can Immediately …
Shop for $1,000,000 homes or $1.95 office supplies,
at best price and with best advisors
Manage all my financial dealings
Work with my doc, or world’s best medical experts, or
humble support groups, on any health issue
Recruit talent to help me with any project
Develop documents collaboratively, with anyone
Share my ideas with the world
Chat with anyone, anywhere
Research anything
Take a course on any topic, from cooking to software
Stay in touch with my 90 year old mom
Play a gajillion games to while away the time
Shop in your
Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
“The Web enables total
transparency. People with
access to relevant information are
beginning to challenge any type of
authority. The stupid, loyal and
humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
SUMMARY:
REINVENT
EVERYTHING
WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
“Banking is
necessary. Banks
are not.”
Dick Kovacevich,
Norwest/ Wells
“It” is real! It is “Life and Death”!
Dream BIG!
Start Now! Study Hard! Play Hard!
Play Fast! Go on Offense!
Hire great folks! (They ain’t cheap. They are young!)
Don’t cut corners on
infrastructure!
Rem: “Age of the Never Satisfied
Customer”!
We ain’t seen nothin’ yet!
Brand Outside
Strategy 2:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
(!!!)
Women … 50+%
of Web
users; 6 of 10 new users; 83%
of wired women are primary
decision makers for family
healthcare, finances,
education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
9/27.5/$3.6T > Germany
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!
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 and Healthcare
Women are … more dissatisfied,
frustrated by the way they are treated
and spoken down to by physicians,
seek more information, are more pressed
for time … and make 75% of health care
decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care
employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be
listened to, to be taken seriously,
to read about it, to think about it.
Women do not want … an
in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC
Davis (Cause: Guys are “in and out” of
stocks more often; women choose
carefully and hold on for the long term)
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
‘How was school today?’ a girl
usually tells her mother every
detail of what happened, while a
boy might grunt, ‘Fine.’ ”
EVEolution
Weight Watchers International “Model”
“What if ExxonMobil or Shell dipped into their
credit card database to help commuting women
interview and make a choice of car pool
partners?”
“What if American Express made a concerted
effort to connect up female empty-nesters
through on-line and off-line programs, geared to
help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out
to deliver quick, efficient service. But, in the
female mold, women were being turned off by
the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment.
Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her
intelligence and ability.”
EVEolution
“What kind of car does
Mommy want?”
“I didn’t know
[company] were giving
company cars to
secretaries.”
Source: UK financial services CEO,
12/99
THIS JUST MIGHT
BE THE BIGGEST
“THING” IN THIS
SEMINAR. [PLEASE:
THINK ABOUT IT!]
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd more money than my
husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say
this is also true of most of my women
friends. Someone should wake up, smell
the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
MessagesFSC:
DYB.com
Death Knell for Ordinary!
Seek Top Talent!
Embrace the Internet Revolution!
D.I.Y. /Age of the Never Satisfied
Customer!
It’s Women, Stupid!