Tom Peters Seminar2001
We Are in a
Brawl with No
Rules!
Norfolk/09.18.2001
“There will be more
confusion in the
business world in the
next decade than in any
decade in history. And the
current pace of change will only
accelerate.”
Steve Case
“Our military structure
today is essentially one
developed and
designed by
Napoleon.”
Admiral Bill Owens, former Vice Chairman, Joint Chiefs
of Staff
“Most of our
predictions are based
on very linear thinking.
That’s why they will
most likely be wrong.”
Vinod Khosla, in “GIGATRENDS,” Wired 04.01
<1000A.D.: paradigm shift: 1000s of years
1000: 100 years for paradigm shift
1800s: > prior 900 years
1900s: 1st 20 years > 1800s
2000: 10 years for paradigm shift
21st century: 1000X tech change than 20th
century (“the ‘Singularity,’ a merger
between humans and computers that is so
rapid and profound it represents a rupture
in the fabric of human history”)
Ray Kurzweil, talk april2001
Forbes100 from 1917 to 1987: 39 members of the
Class of ’17 were alive in ’87; 18 are in ’87 F100; the
18 F100 “survivors” underperformed the market by
20%; just 2 (2%), GE & Kodak, outperformed the
market from 1917 to 1987.
S&P 500 from 1957 to 1997: 74 members of the
Class of ’57 were alive in ’97; 12 (2.4%) of 500
outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the
Market
“Good management was the most powerful
reason [leading firms] failed to stay atop
their industries. Precisely because these firms
listened to their customers, invested aggressively
in technologies that would provide their
customers more and better products of the sort
they wanted, and because they carefully studied
market trends and systematically allocated
investment capital to innovations that promised
the best returns, they lost their positions of
leadership.”
Clayton Christensen, The Innovator’s Dilemma
“We are in a
brawl with
no rules.”
Paul Allaire
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!)
Structure
Part I: The Organization
Part II: The Market
Part III: The Leader
Forces @ Work I
The Destruction
Imperative!
“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)
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
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
The Organization
Basic Premise:
A White Collar
Revolution
108 X 5
vs.
8X1
= 540 vs. 8 (-98.5%)
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
Automation+
75% of what we do: 40
“expert” decision rules!
IBM’s Project eLiza!
The Organization
Work: The
Professional
Service Firm
Model
So what will be the
Basic Building
Block of the
New Org?
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
The Organization
The Heart of the Value
Creation Revolution:
PSF Unbound!
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]
HP … Sun … GE … IBM
… UPS … UTC …
General Mills … Springs
… Anheuser-Busch …
Carpet One … Delphi …
Etc. … Etc.
“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
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4
days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR
RESPONSIBILITY! Why? 9 days =
Client’s World.
Source: Steve Kerr, VP, GE
“The primary strategic mission
for [CEOJeffrey] Immelt is to
hasten GE’s transformation
from a low-margin manufacturer
to a more lucrative services
company that sells solutions as
much as stuff.”
Newsweek/09.10.2001 (Welch raised share of
services revenue from 15% to 70%)
“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)
Springs
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Design.
Systems & Site mgt.
= Turnkey.
The Organization
Brand You:
Distinct …
or
Extinct
“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 SurvivalSkillsKit2001
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
“You must realize that how you invest your
human capital matters as much as how you
invest your financial capital. Its rate of return
determines your future options. Take a job for
what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with
you for 5 years, how much will they
appreciate? How much will my portfolio of
career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
[“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)
Invent. Reinvent. Repeat.
Source: HP banner ad
The Organization
Redefining the Work
The WOW
Project
Itself:
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“Learn not to
be careful.”
Photographer Diane Arbus
to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
The Organization
Brand Action:
Getting Started … a
Personal Perspective
The following slide begins the
“Boss-Free Implementation of
Stuff That Matters” Section. The
slides in this section are heavily
annotated.
Use Normal or Notes Page View to
access the notes.
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
World’s Biggest Waste …
Selling “Up”
THE IDEA:
Model F4
Find a Fellow
Freak Faraway
Heart of the Matter
F2F!/K2K!/
1@T/R.F!A.*
*Freak to Freak/Kook to Kook/
One at a Time/ Ready.Fire!Aim.
THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
“The Oh-Hell-I-Wish-It-WereOver Memorial Day picnic”
or
“The First Annual Seriously
Kewl Celebration of Our
Incredible Staff”
Is It …
Wrestle the damn Safety Manual into line
with the ridiculous new OSHA Regs?
Or …
A stealth opportunity to address the War
for Talent via … a thoroughgoing review
of how safety and environmental
issues contribute to making this a
Great Place to Work?
Reframers’ Rules:
Rule 1: Never accept an
assignment as given!
(Please.)
Rule 2: You’re never so powerful
as when you are “powerless”!
Rule 3: Every “small”
project contains the entire
enterprise DNA!
THE SOFT STUFF
Passion
!
It AIN’T
about the science. It’s
NEVER about the
science. It’s ALWAYS
about the PASSION for
the IDEA.
Message to “scientists”:
I wonder …
Will
one
of you be awoken
some December morning
in Stockholm by candle-carrying
kids?
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
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
Sales2001
The Sales25: Great Salespeople …
1. Know the product. (Find cool mentors, and use them.)
2. Know the company.
3. Know the customer. (Including the customer’s
consultants.) (And especially the “corporate culture.”)
4. Love internal politics at home and abroad.
5. Religiously respect competitors. (No badmouthing, no
matter how provoked.)
6. Wire the customer’s org. (Relationships at all levels &
functions.)
7. Wire the home team’s org. and vendors’ orgs.
(INVEST Big Time time in relationships at all levels & functions.)
(Take junior people in all functions to client meetings.)
Great Salespeople …
8. Never overpromise. (Even if it costs you your job.)
9. Sell only by solving problems-creating profitable
opportunities. (“Our product solves these problems, creates
these unimagined INCREDIBLE opportunities, and will make you
a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT
SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF
5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE
TRADE PRESS?)
10. Will involve anybody—including mortal enemies—if
it enhances the scope of the problem we can solve and
increases the scope of the opportunity we can
encompass.
11. Know the Brand Story cold; live the Brand Story. (If
not, leave.)
Great Salespeople …
12. Think “Turnkey.” (It’s always your problem!)
13. Act as “orchestra conductor”: You are responsible
for making the whole-damn-network respond. (PERIOD.)
14. Help the customer get to know the vendor’s
organization & build up their Rolodex.
15. Walk away from bad business. (Even if it gets you fired.)
16. Understand the idea of a “good loss.” (A bold effort
that’s sometimes better than a lousy win.)
17. Think those who regularly say “It’s all a price issue”
suffer from rampant immaturity & shrunken imagination.
18. Will not give away the store to get a foot in the door.
19. Are wary & respectful of upstarts—the real enemy.
20. Seek several “cool customers”—who’ll drag you into
Tomorrowland.
Great Salespeople …
21. Use the word “partnership” obsessively, even
though it is way overused. (“Partnership” includes folks at
all levels throughout the supply chain.)
22. Send thank you notes by the truckload. (NOT ENOTES.) (Most are for “little things.”) (50% of those notes are
sent to those in our company!) Remember birthdays. Use
the word “we.”
23. When you look across the table at the customer,
think religiously to yourself: “HOW CAN I MAKE THIS
DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?”
24. Great salespeople in great technology companies
can affirmatively respond to the query in an HP banner
ad: HAVE YOU CHANGED CIVILIZATION TODAY?
25. Keep your bloody PowerPoint slides simple!
The Organization
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
The Talent Ten
1. Obsession
P.O.T.* = All Consuming
*Pursuit of Talent
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 (05.17.00)
Sports
Franchise GM
Model 24/7:
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank: BEST
PERSON
IN THE WORLD TO HEAD
EACH INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia-Pacific
profitability from $25 million to $80 million in 2
years.”
Ed Michaels, War for Talent (05.17.00)
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)
What gets measured
gets done. What gets
paid for gets done
more. What gets paid
a lot for gets done
a lot more.
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]
6. Diversity
Mess Rules!
“Diversity defines the health and
wealth of nations in a new century.
Mighty is the mongrel. … The hybrid is hip. The
impure, the mélange, the adulterated, the
blemished, the rough, the black-and-blue, the
mix-and-match – these people are inheriting the
earth. Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
7. Women
Born to Lead!
“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
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
“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
“Boys are trained in
a way that will make
them irrelevant.”
Phil Slater
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
enough
weird people in
“Are there
the lab these days?”
V. Chmn., pharmaceutical house, to a lab director (06.01)
Would Craig
Venter
(Luciano Benetton)
come to work for
us?
9. Opportunity
Make It an Adventure!
“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”
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
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!
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
48 Players =
48 Projects =
48 different success
measures
Why Don’t Most Biz Mgrs.
Think This Way?
“Coaching is winning
players over.” *
Phil Jackson
*Not: “planning,” “implementing,” “clear
communication,” “getting the org chart right.”
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
HR Folks: YOU – not
“marketing” - “OWN”
THE “BRAND
PROMISE”!
(If you wish.)
The Organization
Brand Talent+: The
Education Fiasco
Losing the
War to
Bismarck
“My wife and I went to a [kindergarten] parentteacher 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 grade in art at such a
young age? His teacher informed us that he
had refused to color within the lines, which
was a state requirement for demonstrating
‘grade-level motor skills.’ ”
Jordan Ayan, AHA!
“How many artists are there in the room? Would you please raise
your hands. FIRST GRADE: En mass 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
Every
school I visited was was participating
in the suppression of creative genius.”
identified by the group as a ‘closet artist.’ The point is:
Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving with Grace
“Our education system is a
second-rate, factory-style
organization, pumping out
obsolete information in obsolete
ways. [Schools] are simply not
connected to the future of the kids
they’re responsible for.”
Alvin Toffler, Business 2.0 (09.00)
“The main crisis
in school today
is irrelevance.”
Daniel Pink, Free Agent Nation
An Unnatural
Way to
“Learn”
“Every time I pass a
jailhouse or school, I
feel sorry for the
people inside.”
Jimmy Breslin, 07.11.2001, on “summer school”
in NYC [“If they haven’t learned in the winter,
what are they going to remember from days
when they should be swimming?”]
Schools’ “Kafka-like rituals”: “enforce sensory
deprivation on classes of children held in
featureless rooms … sort children into rigid
categories by the use of fantastic measures such as
age-grading, or standardized test scores … train
children to drop whatever they are occupied with
and to move as a body from to room at the sound of
a bell, buzzer, horn, or klaxon … keep children
under constant surveillance, depriving them of
private time and space …
John Taylor Gatto, A Different Kind of Teacher
Kafka-like rituals (cont.): “assign children
numbers constantly, feigning the ability to
discriminate qualities quantitatively … insist
that every moment of time be filled with lowlevel abstractions … forbid children their own
discoveries, pretending to possess some vital
secret to which children must surrender their
active learning time to acquire.”
John Taylor Gatto, A Different Kind of Teacher
Doing Stuff
that Matters!
“Education, at best, is ecstatic. At
its best, its most unfettered, the moment
of learning is a moment of delight. This
essential and obvious truth is
demonstrated for us every day by the
baby and the preschool child. … When joy
is absent, the effectiveness of the
learning process falls and falls until the
human being is operating hesitantly,
grudgingly, fearfully.”
George Leonard, Education and Ecstasy [1968]
Per George Miller:
Children as
“informavores,” who
“eat up new
Knowledge.”
Frank Smith, Insult to Intelligence
The Learner’s Manifesto
The brain is always learning.
Learning does not require coercion.
Learning must be meaningful.
Learning is incidental.
Learning is collaborative.
The consequences of worthwhile learning
are obvious.
Learning always involves feelings.
Learning must be free of risk.
Frank Smith, Insult to Intelligence
U.C. Ed Dean Walter Karp: “From the first grade
to the twelfth, from one coast to the other,
instruction in America’s classrooms is almost
Answers are
‘right’ and answers are
‘wrong,’ but mostly
answers are short.”
entirely dogmatic.
Frank Smith, Insult to Intelligence
“Questions, questions,
questions. They disturb. They
provoke. They exhilarate. They intimidate.
They make you feel a little bit like you’ve
at least temporarily lost your marbles. So
much so that at times I’m positive that the
ground is shaking and shifting under our
feet. Welcome to Socrates Café.
Christopher Phillips, Socrates Cafe
Most important 3 letters:
We get it
all wrong. We
know how to
do “it” right!
The Horror:
The Organization
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Edge Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
Tomorrow’s Organizations:
Itinerant Potential Machines
TALENT POOL TO DIE FOR. Youthful. Insanely
energetic. Value creativity. Risk taking is
routine. Failing is normal … if you’re stretching.
Want to ‘make their bones” in “the revolution.”
Love the new technologies. Well rewarded.
Don’t plan to be around 10 years from now.
TALENT POOL PLUS. Seek out and work with
“world’s best” as needed (it’s often needed). “We
aim to change the world, and we need gifted
colleagues—who well may not be on our
payroll.”
BRASSY-BUT-GROUNDED-LEADERSHIP. Say “I
don’t know”—and then unleash the TALENT.
Have a vision to be DRAMATICALLY
DIFFERENT—but don’t expect the co. to be
around forever. Will scrap pet projects, and
change course 180 degrees—and take a big
write-off in the process. NO REGRETS FROM
SCREW-UPS WHOSE TIME HAS NOT-YETCOME. GREAT REGRETS AT TIME & $$$
WASTED ON “ME TOO” PRODUCTS AND
PROJECTS.
BRASSY-BUT-GROUNDED-LEADERSHIP. (Cont.)
“Visionary” leaders matched by leaders with
shrewd business sense: “HOW DO WE TURN A
PROFIT ON THIS GORGEOUS IDEA?” Appreciate
“market creation” as much as or more than
“market share growth.” ARE INSANELY AWARE
THAT MARKET LEADERS ARE ALWAYS IN
PRECARIOUS POSITIONS, AND THAT MARKET
SHARE WILL NOT PROTECT US, IN TODAY’S
VOLATILE WORLD, FROM THE NEXT KILLER
IDEA AND KILLER ENTREPRENEUR. (Gates.
Ellison. Venter. McNealy. Walton. Skilling. Case.
Etc.)
ALLIANCE MANIACS. Don’t assume that “the
best resides within.” WORK WITH A SHIFTING
ARRAY OF STATE-OF-THE-ART PARTNERS
FROM ONE END OF THE “SUPPLY CHAIN” TO
THE OTHER. Including vendors and
consultants and … especially … PIONEERING
CUSTOMERS—who will “pull us into the
future.”
TECHNOLOGY-NETWORK FANATICS. Run the
whole-damn-company, and relations with all
outsiders, on the Internet … at Internet speed.
Reluctant to work with those who don’t share
this (radical) vision.
POTENTIAL MACHINES-ORGANISMS. Don’t
know what’s coming next. But are ready to jump
at opportunities, especially those that
challenge-overturn our own “way of doing
things.”
Structure
Part I: The Organization
Part II: The Market
Part III: The Leader
Forces @ Work II
The Sameness Trap
Quality Not Enough!
“While everything may
be better, it is also
increasingly the
same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“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
“Companies have defined
so much ‘best practice’
that they are now more or
less identical.”
Jesper Kunde, A Unique Moment
The Market/IS
Strategy 1A:
Use E-Commerce to
Re-invent Everything!
Dell’s OptiPlex Facility
Big Job: 6
to 8 hours.
(20,000 per day)
Parts Inventory: 2
hours,
100 square feet.
(Overall, 5 days vs. 50 to 90 days; target is
2.5 days)
Cisco!
90% of $20B (=$50M/day)
Annual savings in service
and support from customer
self-management: $550M
Secret Cisco: Community!
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
Anne Busquet/ American Express
Not: “Age of the Internet”
“Age of
Customer
Control”
Is:
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“One cannot be tentative
about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t
ready’ cannot be allowed. Delay and
you risk being cut out of your own
market, perhaps not by traditional
competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
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
“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.
The Market/IS
Strategy 1B:
Healthcare et al.:
Embracing an
e-Led Age of
Self-Determination
“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
“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
Impact #1(?):
Healthcare
HealthCare2001
Consumerism X
Demographics X
IS/Internet X
Info Consolidators X
Genetics & Devices
= YIKES!
1. Consumerism (Patientcentric Healthcare)
“A seismic shift is underway in
healthcare. The Internet is
delivering vast knowledge and new
choices to consumers—raising their
expectations and, in many cases,
handing them the controls.
[Healthcare] consumers are driving
radical, fundamental change.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
“We expect consumers to
move into a position of
dominance in the early
years of the new century.”
Dean Coddington, Elizabeth Fischer, Keith
Moore & Richard Clarke, Beyond Managed Care
Consumer Imperatives
Choice
Control (Self-care, Self-management)
Shared Medical Decision-making
Customer Service
Information
Branding
Source: Institute for the Future
“No one currently
‘owns’ the eHealth
Consumer. It’s an
open playing field.”
Deloitte Research, “Winning the Loyalty
of the eHealth Consumer”
2. Demographics: The
BOOMERS Reach 55!
Boomer World
“From jogging to plastic
surgery, from vegetarian diets
to Viagra, they are fighting to
preserve their youth and
defy the effects of gravity.”
M.W.C. Howgill, “Healthcare Consumerism, the
Information Revolution and Branding”
Message Boomer: (1) “There are
l-o-t-s of us.” (2) “We have
the $$$$$$. (3) “We’re/I’m in
charge!” (4) “We’ll take no
guff from from anyone.”
(5) “We know the emperor
has no clothes.”
IS/Web
3. The
REVOLUTION
“We’re in the Internet
age, and the average
patient can’t email
their doctor.”
Donald Berwick, Harvard Med School
“Without being disrespectful, I
consider the U.S. healthcare
delivery system the largest cottage
industry in the world. There are
virtually no performance
measurements and no
standards. Trying to measure
performance … is the next
revolution in healthcare.”
Richard Huber, former CEO, Aetna
“A healthcare delivery system
characterized by idiosyncratic
and often ill-informed
judgments must be restructured
according to evidence-
based medical practice.”
Demanding Medical Excellence: Doctors and
Accountability in the Information Age,
Michael Millenson
“As unsettling as the prevalence of
inappropriate care is the enormous amount of
what can only be called ignorant care. A
surprising 85% of everyday medical
treatments have never been scientifically
validated. … For instance, when family
practitioners in Washington were queried about
treating a simple urinary tract infection, 82
physicians came up with an extraordinary 137
strategies.”
Demanding Medical Excellence: Doctors and Accountability
in the Information Age, Michael Millenson
CDC 1998: 90,000 killed
and 2,000,000 injured
from nosocomial
[hospital-caused] drug
errors & infections
“In health care,
geography is
destiny.”
Dartmouth Medical School 1996 report, from
Demanding Medical Excellence: Doctors and
Accountability in the Information Age,
Michael Millenson
“Practice variation is not caused by ‘bad’ or
‘ignorant’ doctors. Rather, it is a natural
consequence of a system that systematically
tracks neither its processes nor its outcomes,
preferring to presume that good facilities, good
intentions and good training lead automatically
to good results. Providers remain more
comfortable with the habits of a guild, where
each craftsman trusts his fellows, than with the
demands of the information age.”
Michael Millenson, Demanding Medical Excellence
4. The “Consolidators”:
Fat or Thin?
“Virtual health care webs force
providers to focus on their
areas of excellence and to
invest in areas where they can
generate a sustainable
competitive advantage.”
Healthcare.com: Rx for Reform, David
Friend, Watson Wyatt Worldwide
WebMD
& assigns)
(or heirs
5. Genetics &
Devices
“Recognizing that a single
misspelled gene means the
difference between being
poisoned and being cured was
the first victory for the new
science of pharmacogenetics.”
Newsweek (06.25.01)
“Pharmacogenomics could
fundamentally change the nature
of drug discovery and marketing,
rendering obsolete the
pharmaceutical industry’s practice of
spending vast amounts of time and
money to craft a single medicine with
mass-market appeal.”
The Industry Standard (05.28.01)
“Imagine the day that your
surgeon performs your heart
bypass sitting at a computer
thousands of miles from the
operating table. That day may
come sooner than you think.”
Newsweek (06.25.01)
“There is no question in my
mind that the future of heart
surgery is in robotics.”
Dr. Robert Michler, OSU Med Center, upon
the FDA’s approval of robotic partialbypass surgery
Message Summary: (1) An
unparalleled time for
imagination and bold
action. (2) A time of unprecedented
opportunities. (3) A time
of unprecedented risk.
Golden Age of Patient-centric, Geneticsdriven Healthcare Looms! Current status:
$1.3T. 70M uninsured. 90K killed and 2M
injured p.a. in hospitals. 85% treatments
unproven. Cure depends on locale in
which treated. 50% prescriptions not
work. 2X docs. 2X hospitals. IS primitive.
Accountability & measurement nil. And
everybody’s mad and feels powerless:
docs, patients, nurses, insurers,
employers, hospital administrators
and staff.
The Market/Demographics
Strategy 2A:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%
????
Riding Lawnmowers
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
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42
M
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.”
“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!)
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
“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]
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.
Faith Popcorn, 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?”
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!”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Altan … THIS IS EVEN BIGGER THAN THE
INTERNET!
Tom Peters
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
(272?)
16;
The Market/Demographics
Strategy 2B:
Welcome to
“Old World”!
“ ‘Age Power’ will
st
rule the 21 century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
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%)
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
[ Member Growth: 1987 – 1997
18 – 34: 26%
35 – 49: 63%
50+: 118%
Source: IHRSA]
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury
$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
Brand Outside
Strategy 2C:
Welcome to
“Green World”!
50% to 36%:
Protect Environment >
Economic Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
E.g.: Genetically Altered Food
Would eat: M, 71%; F, 50%
Give to children: M, 59%; F, 37%
Pay more for non-altered:
M, 35%; F, 47%
Source: www.pulse.org & USA Today
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
The Market/The
Experience Factor
Strategy 3A:
Design Matters!
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
Design “is” … WHY I
GET MAD.
MAD.
Wanted: THE
DESIGNER OF MY
RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and hate!
Hypothesis:
THE BASE CASE: I am a design fanatic. Personally,
though not “artistic,” I’m a cool-stuff guy. I love what
I love and I hate what I hate. [Openly.]
But it goes
[much] further, far beyond the personal. Design has
become a professional obsession.
I – SIMPLY – BELIEVE THAT DESIGN PER SE IS
THE PRINCIPAL REASON FOR EMOTIONAL
ATTACHMENT [or detachment] RELATIVE TO A
PRODUCT OR SERVICE OR EXPERIENCE.
Design, as I see it, is arguably the #1 determinant of
whether a product-service-experience stands out … or
doesn’t. Furthermore, it’s “one of those things” …
that damn few companies put – consistently – on the
front burner.
Message:
“Services” are Not Intangible!
You “give off” hundreds of
design cues … daily!
YOU ARE A DESIGNER!
First Steps: “Beauty Contest”!
• Select one form/document: invoice, air
bill, sick leave policy, customer returnsclaim form
• Rate the selected doc on a scale of 1 to 10
[1 = Bureaucratica Obscuranta/ Sucks; 10
= Work of Art] on three dimensions:
Beauty, Grace, Clarity
• Re-invent!
• Repeat, with a new selection, every 15
working days.
The Market/The
Experience Factor
Strategy 3B:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre
& Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based
Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
“Experience” applies to
all work!
The Market/The
Experience Factor
Strategy 3C:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“Most companies tend to equate branding with the
company’s marketing. Design a new marketing
campaign and, voila, 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, A Unique Moment
“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
Scott Bedbury/ Nike, Starbucks
“A Great Brand taps into emotions. Emotions drive
most, if not all, of our decisions. A brand reaches
out with a powerful connecting experience. It’s an
emotional connecting point that
transcends the product.
“A Great Brand is a story that’s never completely
told. A brand is a metaphorical story that
connects with something very deep - a
fundamental appreciation of mythology.
Stories create the emotional context people need
to locate themselves in a larger experience.”
“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, A Unique Moment [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
“Brand Promise” Exercise: (1) Who
Are WE? (poem/novella/song, then 25 words.)
(2) List three ways in which we are
UNIQUE … to our Clients. (3) Who
are THEY (competitors)? (ID, 25 words.)
(4) List 3 distinct “us”/”them”
differences. (5) Try “results” on
your teammates. (6) Try ’em on a
friendly Client. (7) Big Enchilada:
Try ’em on a skeptical Client!
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: See the next slide.)
Source: Jump Start Your Business Brain, Doug Hall
2 Questions
“How likely are you to purchase
this new product or service?” (95%
to 100% weighting by execs)
“How unique is this new product
or service?” (0% to 5%*)
*No exceptions in 20 years – Doug Hall,
Jump Start Your Business Brain
Structure
Part I: The Organization
Part II: The Market
Part III: The Leader
The Leadership50
Leading in
Totally Screwed
Up Times
1. Leadership Is a …
Mutual
Discovery
Process.
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!
“I don’t
know.”
2. Great Leaders on
Snorting Steeds Are
Important – but Great
Managers (Type I
Leadership) are the Bedrock
of Organizations that
Perform Over the Long Haul.
3. But Then Again, There
Are Times When This
“Cult of Personality”
(Type II Leadership) Stuff
Actually Works!
4. Find the
“Businesspeople”!
(Type III Leadership)
I.P.M.
(Inspired Profit
Maniac)
4A. The Golden
Leadership Triangle.
The Golden Leadership
Triangle: (1) CreatorInventor-Visionary … (2)
Talent Fanatic … (3)
Inspired Profit Mechanic.
Project Team Golden Triangle
(1) Champion-Maniac.
(2) Implementer-Pol. (3)
Schedule & Budgets
Fanatic.
5. Leadership Mantra
#1: IT
ALL
DEPENDS!
Renaissance Men
are … a snare, a
myth, a delusion!
6. 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.
7. Leaders
LOVE the
MESS!
7A. Leaders
Groove on
AMBIGUITY!
“Most of our
predictions are based
on very linear thinking.
That’s why they will
most likely be wrong.”
Vinod Khosla, in “GIGATRENDS,” Wired 04.01
8. 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!)
8A. Leaders
Re
-do.
“Sony Electronics has a wellearned reputation for persistence.
The company’s first entry into a
new field often isn’t very good. But,
as it has shown in laptops, Sony
will keep trying until it gets
it right.”
Business Week (5/01)
8B. Leaders Are
PLAYFUL.
“You can’t be a serious innovator
unless and until you are ready,
willing and able to seriously play.
‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage,
Serious Play
Never trust
a “boss” with
no toys in
his/her office!
Axiom:
9. Leaders
DELIVER!
“Leaders don’t
‘want to’ win.
Leaders ‘need
to’ win.”
#49
10. Leaders
FOCUS!
“To
Don’t ”
List
11. Leaders
Win Through
LOGISTICS!
The “Gus
Imperative”!
12. “Leaders”
Know:
‘POWERLESS’
IS COOL!
Heart of the Matter
F2F!/K2K!/
1@T/R.F.A.*
*Freak to Freak/Kook to Kook/
One at a Time/ Ready.Fire!Aim.
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
13. Leaders Understand
the Ultimate Power
of
RELATIONSHIPS.
13A. Leaders Say
“Thank
You.”
“The deepest
human need is the
need to be
appreciated.”
William James
14. Leaders
Wire the Joint!
Winners wire.
Losers are
slaves to rank.
15. Leadership
Is Improv!
16. Leaders
Trust in
TRUST!
!
Credibility
16A. Leaders Don’t
Scapegoat.
17. Leaders Are
Natural
EMPOWERMENT
FREAKS!
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts on almost
every measure”
Title, Special Report, Business Week, 11.20.00
18. Leaders
FORGET!/
Leaders
DESTROY!
“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
19. BUT … Leaders Have
to Deliver, So They Worry
About “Throwing the
Baby Out with the
Bathwater.” [Life’s a
Bitch…]
“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)
20. Leaders …
HONOR THE
USURPERS … in
Their Organizations!
Saviors-in-Waiting
Disgruntled Customers
Fringe Competitors
Rogue Employees
Edge Suppliers
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
21. Leaders
HANG OUT
WITH
FREAKS!
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
22. Leaders Make
[Lotsa] Mistakes –
and MAKE NO
BONES ABOUT IT!
“Fail faster.
Succeed
sooner.”
David Kelley/IDEO
22A. Leaders Make BIG
MISTAKES!
22B. Leaders Honor
Mistakes & Create
“Blame-free
‘Cultures.’ ”
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
23. Leaders Set
DESIGN
SPECS.
Richard’s rules! (Innovative,
high quality, affordable, cheeky)
24. Leaders Know
When to
CHALLENGE (BURN)
Design Specs!
“The ‘chump-tochamp-to-chump cycle’
used to be three
generations. Now it’s
about five years.”
Bill McGowan
24A. Leaders Love to CREATE
NEW MARKETS. Leaders
Know that THERE’S MORE TO
LIFE THAN “LINE
EXTENSIONS.”
“Acquisitions are about
buying market share. Our
challenge is to
create markets.
There is a big difference.”
Peter Job, CEO, Reuters
25. Leaders Don’t
Create “Followers”:
THEY CREATE
LEADERS!
Brand You, Big Time!
I AM AN
ARMY OF
ONE
26. When It Comes to
TALENT … Leaders
Always Swing fore the
Fences!
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 (05.17.00)
27. Leaders “Win
Followers Over”
WHAT AN IDIOT: “Instead
of employees being in the driver’s
seat, now we’re in the driver’s
seat.”
“Coaching
is winning
players over.”
PJ:
28. Leaders have
MENTORS.
29. Leaders LOVE
RAINBOWS – for
Pragmatic Reasons.
“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
29A. Leaders Pursue
Poets!
“Expose yourself to the
best things humans have
done, and then try to
bring those things into
what you’re doing.”
Steve Jobs
30. Leaders
“Manage” Their
EVP.
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
Source: Ed Michaels et al., The War for Talent
31. Leaders Know “It’s
My Fault.”
32. Leaders
LOVE the
New Technology!
“Believe in the
Internet … MORE
THAN EVER.”
1
Andy Grove, Cover quote, Wired (June 200
)
33. Leaders Out
Their
PASSION!
“A leader is a
dealer in
hope.”
Napoleon
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
34. Leaders Know:
ENERGY
BEGETS
ENERGY!
BZ: “I am a …
DISPENSER OF
ENTHUSIASM!”
35. Leaders Know It’s ALL
SALES ALL THE
TIME.
Sales2001
36. 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
37. Leaders …
SHOW UP!
Rudy!
38. Leadership
Is a Performance.
BELIEVE IT.
“You must be
the change you
wish to see in the
world.”
--M.G.
39. Leaders Have
GREAT
STORY!
a
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
40. Leaders
Create
BUZZ!
41. Leaders Pursue
DRAMATIC
DIFFERENCE!
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: “intent to purchase” – 100%;
“unique” – 0% to 5%)
Source: Jump Start Your Business Brain,
Doug Hall
42. Leaders
Focus on the
SOFT STUFF!
Message: Leadership is
all about love! [Passion,
Enthusiasms, Appetite for Life,
Engagement, Commitment, Great
Causes & Determination to Make a
Damn Difference, Shared Adventures,
Bizarre Failures, Growth, Insatiable
Appetite for Change.] [Otherwise, why bother?
Just read Dilbert. TP’s final words: CYNICISM SUCKS.]
43. Leaders
KNOW They Can
Make a Difference!
Hackneyed but none the less
LEADERS SEE
CUPS AS “HALF
FULL.”
true:
44. Leaders
LISTEN!
See Stephen!
45. Leaders
LOVE
“POLITICS.”
46. Leaders SERVE.
Robert Greenleaf: Servant
Leadership: A Journey
into the Nature of
Legitimate Power and
Greatness
47. 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.)
48. Leaders Are
Graceful.
“My favorite word is grace –
grace,
saving grace, grace under
fire, Grace Kelly. How we live
whether it’s amazing
contributes to beauty – whether
it’s how we treat other people or
the environment.”
Celeste Cooper, designer
49. Leaders
???:
“LEADERS NEED TO
BE THE ROCK OF
GIBRALTAR ON ROLLER
BLADES”
“ ‘It’s only business,
not personal’ … IT
ALWAYS IS
PERSONAL.”
“Hire smart – go
bonkers – have grace –
make mistakes – love
technology – start all
over again.”
“Leadership is the
PROCESS of
ENGAGING PEOPLE in
CREATING a LEGACY
of EXCELLENCE.”
50. Leaders Know
WHEN TO
LEAVE!
“Let’s make a
dent in the
universe.”
Steve Jobs