Distinct or … Extinct
Tom Peters Seminar2000
Buffalo
09 June 2000
Defeated Before
The Starter’s Gun!
“Track 4: Managing
Organization Change (Helping
Tired and Overworked
Professionals with Today’s
Workplace Realities)”
NAPM: “You are
the
Rock Stars
of the
B2B Age!”
An Age of Passion:
1 Year = 1.5 Wal*Marts
03.27.99: $167B
03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
“Researchers say they have found
a way to mate human cells with
circuitry in a ‘bionic chip’ … The
tiny device – smaller and thinner
than a strand of hair – combines a
healthy human cell with an
electronic circuitry chip.”
AP/AOL/02-00
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)
64/24
Goal?
Welcome to the Land of the True Believers!
“We have the ability to turn the
economy upside down, to
enhance lives, and to drive
civilization forward.”
Michael Saylor,
MicroStrategy
“It means nothing
less than the total
reinvention of
this company.”
Jacques’ New New Ford
Ford + MSN CarPoint
Ford + Yahoo!
Ford + Oracle
Ford + HP/MCIWorldcom
Etc.
Etc.
“We are in a
brawl with no
rules.”
Paul Allaire
S.A.V.
T.T.D.s
The next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do.
These are by and large shorthand
forms of training exercises I use.
Also: Most of these T.T.D. slides have
accompanying Notes.
(See following slide.)
Tom Peters
T.T.D./True or False:
“incrementalism”
VERSUS
“innovation”?
Notes Page
• This is a daunting issue. There is no “right
answer.” But it merits constant, conscious
debate. Consider the value of incremental
change. [Kaizen, etc.] And discuss whether or
not this thwarts “BIG” initiatives aimed at
wholesale reinvention.
• Also: Consider … “Can we do both?” [I’m not
sure.] P.S.: This crucial issue holds for Finance
Departments as much as Product Divisions. And
it holds for the smallest and newest of
businesses! THIS DEBATE IS WORTH LOTS OF
TIME! KEEP IT PRACTICAL!
Tom Peters
Seminar2000
Brand Everything:
Distinct or Extinct!
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
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
“When asked to name just one big
merger that had lived up to
expectations, Leon Cooperman,
former cochairman of Goldman
Sachs’ Investment Policy Committee,
answered: ‘I’m sure there are success
stories out there, but at this moment I
draw a blank.’ ”
Mark Sirower, The Synergy Trap
“Talent” and a $2T
enterprise??????
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small
startup that has a great
technology product on the
drawing board that is going to
come out in six to twelve months.
We buy the engineers and the
next generation product. …”
John Chambers, Cisco
Dept. Head I = Sports G.M.
Dept. Head II = V.C.
G.M. = The Recruitment and
Development of Top Talent.
[Period!]
V.C. = Bets on “Talent.” Bets
on Projects. [Period!]
Silicon Valley Success Secrets
“Pursuit of risk”: 4 of 20 in V.C.
portfolio go bust; 6 lose money; 6
do okay; 3 do well; 1 hits the
jackpot
Source: The Economist
“R & D”
Intel’s venture fund:
275 investments, $8B
Source: Fast Company , eCompany
Net World!
Act now. Analyze
later.
Avram Miller
[TP to Chain Owner …
“Do 5 deals before you go
home!”]
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
C.E.O.
to
C.D.O.
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Paradox Redux
Atlanta: +113,600 = #1 metro area
Layoffs [major]: BellSouth,
Lockheed, Coca-Cola
“Change the
rules before
somebody else
does.”
Ralph Seferian, VP, Oracle
Brand Inside
Brand Org: Lean,
Mean, Linked &
Electronic
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar
Revolution!
Cemex and FDX!
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
The “&-!!+#$% in the middle”*
Jim Clark on Healtheon/WebMD
* ’twixt docs, patients, insurers and providers;
$275B of $400B in waste; source: Michael Lewis,
The New New Thing
[ Incidentally …
CEO Jeff Arnold
Age: 30
First Start-up: Age 24]
“This is the Age of Ageism: The
real innovator’s dilemma isn’t
‘disruptive technologies;’ it’s
the relentless rise of the quasiadolescents who wield them.”
Michael Schrage (06.00/Fortune)
“We want to be the
air traffic controllers
of electrons.”
Bob Nardelli,
GE Power Systems
So does Enron!
[et al.]
Buzzsaw.com
Builders, Owners, Architects,
Contractors, Suppliers
$4T industry
5,300 commercial bldg. projects’
specs on-line; +70 per day
And …
e-Builder.com,
BuildNet.com,
EqualFooting.com
[et al.]
12/31/00 (per Newsweek 04.24.00)
75% of U.S. universities will have on-line
offerings/ 5.8 million students
“Unbundling” profs’ jobs (star lecturer,
facilitator)/ Repackage “content”
as multi-media “event”
AAUP is angry! (Good news!)
355 studies: Equal results!
(and one teachers union study
that disagrees!)
These are …
L.A.D.T.I.R.S.*
*Life-and-death-total-industry-reinventionstruggles
Brand Inside
Brand Work!
So what will be the Basic
Building Block of the
New Org Unit?
Why are there no
books on how to create
a “Cool, Rocking,
WOW-producing
Finance Department”?
You are the
Rock Stars
of the
B2B Age!
[NAPM Redux: Welcome
to the Y2K New Orleans
Jazz and Real Cool
Purchasing Dudes
Festival!]
NAPM: Not “Purchasing”!
NAPM: Not “Supply Chain Mgt.”
NAPM =
T
* otal
TE/IR!*
Enterprise/Industry
Reinvention!
Message to NAPM:
You are
Re-invention
Evangelists!
“support function” / “cost
center” / “bureaucratic
drag”
or …
“Rock Stars of the ‘Age of
Talent’ ”
’tude dude!
PSF 1.0
Professional Service
Firm Conversion Kit /
Release 1.0
Every job done in
W.C.W. is also done
“outside” … for profit!
Credo
“WORK
WORTH
PAYING FOR”
PSF 1.0
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
The “7Ps” of PSF 1.0
Projects!
Passion!
Provocation!
Partnership!
Politics!
Professionalism!
Performance!
C.I.O.
to
C.E.F.R.N.S.*
*Chief Evangelist For
Really Neat Stuff
“How long does
‘culture change’
take?”
What Do I “Do” First?
One Minute
Excellence!*
*Thomas Watson
Culture Change is not “Corporate.”
Culture Change is not a “Program.”
Culture change does not take “Years.”
Culture Change does not start “Today.”
Culture Change starts Right
Culture Change
Now!
Lives in the Moment!
Culture Change is
Entirely in Your Hands!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
But Does It Matter ????
“On time, on budget …
who cares?”
anon. seminar participant (4/99)
“You really got to me. So
many of our information technology
projects take on a life of their own,
and I know they’ll never end up as
more than ‘mediocre successes.’ ”
CEO, F100 financial
services company (10-98)
WOW Project Anatomy
I. Create!
II. Sell!
III. Implement!
IV. Exit!
Create/Reframers’ Rules:
Rule 1: Never accept an
assignment as given!
Rule 2: You’re never so powerful
as when you are “powerless”!
Rule 3: Every “small” project
contains the entire enterprise
DNA!
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
WOW Project “Acid Test”
Can you explain it with zest to your 14-year-old?
Implement/Culture of Prototyping
“Effective prototyping may be
the most valuable core
competence an innovative
organization can hope to
have.”
Michael Schrage
“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
T.T.D./ Prototyper’s Laws
Define a small, practical test of something on a
page or less of text. Now.
Gather “found” materials … on the [very] cheap.
Find a/one partner-“customer” who’ll provide a
test site.
Set a very tight deadline of about 5 days for the
next concrete step.
Conduct the test! Debrief A.S.A.P.
Set the next test date. Now. [No more than 5
days hence.]
T.T.D./ Secret No. 1: Forget “selling up”! Go
horizontal: Find a (one!) “line” ally in “the
Boonies”!
Secret No. 2: “Powerless” allies are Cool!
Secret No. 3: Become a Prototyping Maniac!
Secret No. 4: Embrace Politics/ “Community
Organizing”!
Secret No. 5: Passion Rules! Get your story in
shape!
K2K!
SOOOO … HOW MANY OF
YOUR COLLEAGUES ARE
“BACK HOME” AT WORK ON
NO-BALONEY …
WOW* PROJECTS!
* WOW = Will be remembered fondly/
bragged about 5+ years from now
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
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
Characteristics of the “Also Rans”
“minimize risk”
“respect the chain of command”
“support the boss”
“make budget”
Source: Fortune on “most admired
global corporations” (10/26/98)
T.T.D.: Now!
– List all projects
– Carefully describe a “WOW Outcome” for
you and the Client
– Score (!) all projects on WOW, Beauty,
Impact, Raving Fan-hood
– Pick one project with a high combined score
– Draft a one-page New Description that
emphasizes WOW, Beauty, etc.
– Circulate and edit … for three days
– Reduce to 5 bullet points
[We are not trying to “WOW you
up.”
We think you are/have WOW.
We are trying to give you
permission to be WOW.]
1) Turn ignition key.
2) Shift into drive.
3) Press foot firmly on the
throat of mediocrity.
Source: Mercedes ad
Brand Inside
Brand You:
Distinct …
or
Extinct
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
Personal “Brand Equity” Evaluation
– I am known for [2 to 3 things]; next year at this time I’ll
also be known for [1 more thing].
– My current Project is challenging me …
– New things I’ve learned in the last 90 days include …
– My public “recognition program”
consists of …
– Additions to my Rolodex in the last 90 days include …
–My resume is discernibly different
from last year’s at this time …
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
T.T.D./Assignment
Construct a 1/8-page or
1/4-page ad for
Brand You … for the
Yellow Pages
Notes Page
•THIS IS A BIG
DEAL. TAKE IT
SERIOUSLY. [“Yellow
Pages ads” are the centerpiece of our
formal Brand You training programs.]
[ T.T.D.: How About It?
Replace your current
evaluation process with
Yellow Pages ads.]
Notes Page
• NO BULL! Some of our Clients have gone
this far. And report stunning results. If you
can’t do this formally, try it informally.
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
T.T.D./Your R.I.P.
IS IT … FORMAL?
IS IT ... WOW!?
Notes Page
• We think “R.I.P.s” are imperative! So …
please take these two questions seriously
and literally!
T.T.D./R.I.P.
Use by yourself.
Use with your mates.
Use [quantitatively?] as a
measure of departmental/ P.S.F.
renewal.
Use in formal eval process.
Notes Page
• The whole idea is to make “R.I.P.s” a/the
centerpiece – formally – of measuring unit
“freshness.” E.g.: SCORE EVERYONE’S
“R.I.P.” ON ITS BOLDNESS/WOW.
“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
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
When you love
what you do,
you’re alive.
jobs.com
Bill Parcells’ World/
Brand You World!
BLAME NOBODY!
EXPECT NOTHING!
DO SOMETHING!
NY Post (9/99)
Women and
new-economy
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
“Boys are trained in a
way that will make
them irrelevant.”
Phil Slater
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (5/2000)
Brand Inside
Brand Talent: The
Great War for Talent
Issue Y2K
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 market’s being divided
up right now. We’re in a
tough competition [with the
U.S. and the U.K.] for
the best brains.”
Gerhard Schroeder, on Germany’s new
tech immigration policy
[Frankfurter Allgemeine/06.02.00]
Tomorrow’s Headlines
“Molecular biologists are
up 3 points, economists
down 1/4 , in
moderate trading”
futureWEALTH, Stan Davis and
Christopher Meyer
There is no “talent shortage” …
if …
you are a
GPTW*
*Great Place To Work
Alan Kay on
PARC’s Bob Taylor
“He was a
connoisseur of
talent.”
Talent war, Web-speed!
Every resume or employment
question that comes to Lucent via
the Web gets answered in 30
minutes or less. [24/7.]
Red Herring [06.00], on Lucent Director of
Recruitment Jim Baughman
“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!)
“He grew his hair long, played
guitar in a rock band, chased
girls, got into trouble. At age 17
he was flogged by his house
master, who described him as
‘the most difficult boy I’ve ever
had to deal with.’ ”
Solution?
Put Ritalin in his food …
Or …
Elect Him Prime Minister
Tony Blair*
*talk/May 2000
“Whoever is the
most impertinent
has the best
chance.”
W.A. Mozart
“Conformity is the
enemy of freedom
and the jailer
of growth.”
J.F.K.
Yes!
Director of Bringing in
the Really Cool People
All You Need to Know?
Chief Evangelist For Really
Neat Stuff
Director Of Bringing In The
Really Cool People
T.T.D.
STEAL THESE
TWO JOB
TITLES!
Talent = Brand
Brand Outside
=
Brand Inside
Brand inside
A BIAS FOR
ACTION = No. 1
S.A.V.
Net World!
Act now. Analyze
later.
Avram Miller
[TP to Chain Owner …
“Do 5 deals before you go
home!”]
Fail.
Forward.
Fast.
High-tech exec
“Steve Ross had a
wonderful philosophy:
People get fired for
not making mistakes.”
Bob Pittman
Ready.
Fire!
Aim.
Ross Perot, Wayne Calloway,
Harry Quadracci, et al.
Bottom Line:
The new
metabolism!
Forces @ Work II
The Commodity Trap
In the Beginning …
“The audit has become a
commodity.”
Big 5 audit partner to TP
Quality Not Enough!
“Quality as defined by few defects
is becoming the price of entry for
automotive marketers rather than
a competitive advantage.”
J.D. Power
Quality Not Enough!
“While everything may be
better, it is also increasingly
the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
What’s Special?
“Customers will try ‘low cost
providers’ because the Majors
have not given them any clear
reason not to.”
Leading Insurance Industry
Analyst (10-98)
“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 Nordstrom and Jonas Ridderstrale,
Funky Business
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
“When we did it ‘right’
it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Pretzel Crumb-less-ness Plus …
“The Ritz Carlton Experience
enlivens the senses, instills
well-being and fulfills even the
unexpressed wishes and needs of
the guest.”
from the Ritz Carlton Credo
“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
Nirvana!
- Nordstrom
- Four Seasons
- Adirondack Guide Boat
- OXO Good Grips
- Ziplocs
- Power Point
Why?
Cool!/Surprising!
Reliable!
Friendly!/Comfortable!
Aesthetically pleasing!
Consider …
What words and
emotions do you use to
describe the things
you love?
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 1:
Lead the Customer!
“The customer is a rear
view
mirror, not a guide to the future.”
George Colony, Forrester Research
“If you worship at the throne of the
voice of the customer, you’ll get only
incremental advances.”
Joseph Morone, President, Bentley College
Early Customer Rejection
Post-Its [12 years!]
Chrysler Minivans
VCRs
Fax machines
FedEx
CNN
Heart-assist pumps
Etc.
Source: Fortune
Good = Bad/ 1 of 30,000
“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
“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
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Business!
2X = 100 days
(Internet traffic)
2X = 9 months
(network capacity)
Source: Red Herring (1-00)
Web World/05.00
1B pages/7B hotlinks/+1M per day
“For the first time in history, people
everywhere have access to the
thoughts, products and writings of a
large and growing percentage of
earth’s population.”
The New Yorker/05.29.00
Tomorrow Today: Cisco!
90% of $14.4B
(Cisco Connection ONLINE)
Save $500M
(service and tech support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting)
And Larry?
Service Call Center
$300.00 per transaction
to $1.50
Savings: $550,000,000.00
Source: Ralph Seferian, Oracle
[part of O’s $1B saving – on a rev.
base of $9B; $1B addnl this year]
B2B
1999 – 2004: 50X
2004: $7.4 T
Source: GartnerGroup
(per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
B2B = No.1
CarStation (auto-body shops),
ChemConnect (chemicals),
Collabria (commercial printing),
DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical
supplies), Portera (knowledge
workers), Etc., Etc., Etc., Etc.
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
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”
Is: “Age
of Customer
Control”
Shop in your
Underwear
Source: SM’d logo for www.ae.com
ae = American Eagle Outfitters
The Supply Side …
The Age of the Choiceboard
The War of the Choiceboards
Source: Adrian Slywotzky,
HBR 1-2/2000 [<1%]
“In the network economy, the
Website becomes the company’s
primary interface to the customer.
The user interface becomes the
marketing materials, store front,
store interior, sales staff and postsales support all rolled into one.”
Jakob Nielsen,
Designing Web Usability
“Most companies would do more
business on the Internet if they
fired their entire marketing
department and replaced it with
people who could produce
interactive content that actually
made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
Red Herring (01/00)
75% of online
shoppers don’t
complete their
purchase!
“Even if executives of established
businesses grasp the impact of new
technologies … they still face a massive
competitive disadvantage precisely
because they are incumbents. … They
do complex financial calculations and
get bogged down in internal political
debates. Insurgents have no such
inhibitions.”
Philip Evans & Thomas Wurster,
Blown to Bits
“ … if they set up a
completely independent
organization and let that
organization attack the
parent.”
Clayton Christensen,
The Innovator’s Dilemma
“We haven’t been able to
start new businesses
within existing
businesses.”
Enron exec [Fortune/06.00]
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
“E-business is the
final nail in the coffin
for bureaucracy at
GE.”
Jack Welch/
GE Annual Report 2000
[ Words to Live By …
“Hierarchy is an
organization with its face
toward the CEO and its ass
toward the customer.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business]
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.
**Reinvent our marketspace!
No Room for “Competent”* Sorts
Beer Wholesalers
Personal Trainers [FitLinxx]
Financial Planners
Car Dealers
* LVA, “M”VA … vs.
HVA [Web-enhanced]
Web Strategy: GE Power Systems
“Launch and Learn”
(4 sites in 30 days)
“It’s better to be first with less
than last with more. Success on
the Web isn’t just about
time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
[Pervasive “Risk Markets”
“For a dollar a month, an Ohio insurance
company will rent you a GPS receiver to
install in your car. As part of your policy, it
signals how often, when, and which
highways you drive and into which
neighborhoods you go. The premium you
pay reflects your actual driving risk.”
Stan Davis & Christopher Meyer,
futureWEALTH]
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 3:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
Most Under-reported story!
9M*/28M(1 of 4)/$3.6T
[> Germany]
* 400K in ’72; 132% since ’92
Sources: NFWBO, Cognetics, Business Wire (030600)
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Women … 49% of Web users; 6
of 10 new users; 83% of wired
women are primary decision
makers for family healthcare,
finances, education.
Source: Business Week (11-99)
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874?
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42M
Yeow!
1970 … 1%
2000 … 50%
OPPORTUNITY
NO. 1!*
[* No shit!]
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.
“He simply wants the transaction to
take place. She’s interested in creating
a relationship. Every place women go,
they make connections.”
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
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done
indicates that women really care
about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Q: Why do guys like pagers?
A1: Sense of importance
[Pager Dude]
A2: Cubicle Slaves’ replacement
for “real guys” tool belts
Q: Why do women like pagers?
A: Get the news A.S.A.P. if her child is
in the Nurse’s Office
Q:Why do women hate pagers?
A: They find nothing romantic about
wearing a Stetson wrench or Stanley
hammer attached to their waist! [Note
the pager’s clip-on device … guys ]
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
EVEolution: Truth No. 2
If You’re Marketing to
One of Her Lives,
You’re Missing All
the Others
E.g. …
“Office Depot could become Life
Depot, offering a selection of lastminute items for the hard-pressed
female business owner.”
“Weight Watchers could extend out
to Family Weight Watchers.”
EVEolution
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/ Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“What kind of car does
Mommy want?”
“I didn’t know
[company] were giving
company cars to
secretaries.”
Source: UK financial services CEO,
12/99
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!”
Not a Morality Play!
“It is critical that we all understand
that IBM is not marketing to women
entrepreneurs because it is the thing
to do, or even the right thing to do.
We are marketing to women
entrepreneurs because it is a huge
opportunity.”
Cherie Piebes
Wanna see my
“porn”
collection?
THIS JUST MIGHT
BE THE BIGGEST
“THING” IN THIS
SEMINAR. PLEASE:
THINK ABOUT IT!
“If we are single, they say we
couldn’t catch a man. If we are
married, they say we are
neglecting him. If we are divorced,
they say we couldn’t keep him.
If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female
political candidacy
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
74/55
“At each stage of their lives, the
needs and desires of the baby
boomers have become the dominant
concerns of American business and
popular culture. If you can anticipate
the movement of the baby-boom
generation’s life-span migration, you
can see the future.”
Ken Dychtwald, Age Wave
Aging/“Elderly”
2X growth rate
$$$$$$$$$$$$
“I’m in charge!”
Good source: Ken Dychtwald,
Age Wave
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 4:
Design Rules!
And Tomorrow …
“Fifteen years ago companies
competed on price. Now It’s
quality. Tomorrow
design.”
Robert Hayes
it’s
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
Design as Soul
“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
meaning of design. Design
is the
fundamental soul of a
man-made creation.”
Steve Jobs
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
T.T.D./Message:
Services are Not Intangible!
You “give off” hundreds of
design cues … daily!
YOU ARE A DESIGNER!
Notes Page
• List 100 [!] “design cues” that you give
off! [Okay, start with 25.]
Graceful language!
T.T.D./“Beauty Contest!”
1. Pick one form/ document: invoice,
airbill, sick leave policy, returns claim
form.
2. Rate it on a 1 to 10 scale
(1 = Awful; 10 = Scintillating) on three
dimensions: Beauty, Grace, Clarity.
3. Repeat … every 15 days.
T.T.D./Design “Awareness”!
STEP No. 1:
NOTEBOOK!
[Start recording the awesome
and the awful.]
Notes Page
• THIS IS MY “SECRET.” I am not “artistic.”
But … I did teach myself to be …
CONSTANTLY AWARE. The Key: My
[simple] notebook! [I’VE NOW BEEN
“RECORDING” FOR ALMOST TEN
YEARS!]
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater &
Every Business a Stage
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for a
43-year-old accountant to dress in
black leather, ride through small
towns and have people be afraid
of him.”
Harley exec, quoted in Results-based
Leadership
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile. Why?
Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
[Plot
Williams Sonoma = 6 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Vermont Country Store = 8+
Garnet Hill = 9
L.L. Bean = 5 [was 9+]
Land’s End = 7+
Colonial Williamsburg = ?]
And Now For A
th
Nod To 1/7 of
Our Economy!
“Medicine looks likely to
change more in the next
20 years than it has in
the last 200.”
British Medical Journal (11-11-99)
Health Care Tsunami
Prevention/Wellness/Fitness
Proactive Engineering/Gene
“stuff”[Blockbuster-Bazooka to
Specific-Sniper’s Rifle]
Holistic/Homeopathic/Non-traditional
Patient-centric/Web-led
No waste [Healtheon/WebMD et al.]
Etc.
TP 03.26.00:
AMA Riff
Are You Fighting Yesterday’s War?
Docs don’t know it all.
There are a lotta bad docs.
There are a lotta bad medical decisions.
“Hospitals” kill far too many people.
(Bad decisions, bad execution.)
Systemic waste is stratospheric. (Still.)
Patients are getting (much) smarter.
Patients have had it with HMOs. (And Docs with the
“white-coat syndrome.”)
You are not smarter than I am. (I am your partner.)
You are not busier than I am. (!!!!!)
Patients want more data. (And can readily get it.)
Boomers will control their lives. Period.
Medicine is about to be overwhelmed with a tsunami!
Confusing Message*
Traditional indemnity: 37% to
11% [’94-’99; 77% in ’88]
HMO: 23% to 30%
PPO: 25% to 43%
*Cut the waste & provide choice
Alternative Medicine
More visits than to physicians
Same $$$ expenditure
[approx $27B]
Stanford study: 2/3 use alt therapies
“This is the first time in Western medical history
that we have had a movement that is consumer
driven.”/Dr. Woody Merrell, Center for Health
and Healing, Beth Israel Hospital, Manhattan.
[Merrell: Process = Partnership.]
Source: Barron’s/05.15
SoftWatch (MS)
“Manage relationships across the
healthcare continuum”/ Amir Kishon
Establish e-relationships with
customers/retain customers/collect data
Patients record info + receive feedback/
online access to nurses
Community with others with MS
Etc.
Source: Start-Up
1965: “ ‘Doctor’ will see you now. ‘Doctor’
will take care of you.”
YES, NURSE.
ME GOOD PUPPY DOG.
1995: “HMO will take care of you.”
BULLSHIT.
2005: “I will take care of me. I’d like your
expert help.”* [*P.S.: THE VIAGRA, ETC.] I
ORDERED ONLINE IS GREAT.]
Patient-centric* Health Care
Wellness (Fix to prevent.)
Partnership (“Tour guide” model.)
RESPECT! (Mutual.)
WOMEN RULE!
*Not: HMO-centric, Employer-centric,
Insurer-centric, Doc-centric
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master e-commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
Brand Outside
BRAND POWER!
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
No Room for Brands?
Nike
Saturn
CNN
America Online
Charles Schwab
Starbucks
The Gap
Intel
Etc.
Brand = Trust!
“Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but ‘Intel Inside’ has
become a ‘trust mark’ - a trademark
that consumers put their faith in.”
The Economist
What Can [Can’t] Be Branded?
“Branding is not a problem if you have the
right mentality. You go to your team and
you pin up a $200 Swiss Army Watch.
Competing in the ridiculously crowded
sub-$200 watch market, they made it into
a brand name, named after the most
irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they
can do it, we can do it.’ ”
Barry Gibbons
“Salt is salt is salt. Right? Not when it
comes in a blue box with a picture of
a little girl carrying an umbrella. Morton
International continues to dominate the
U.S. salt market even though it charges
more for a product that is demonstrably
the same as many other products
on the shelf.”
Tom Asaker, Humanfactor Marketing
T.T.D./Calling the
Corporate Shrink!
“Organizational
Psychotherapy”/
WHO WE ARE!
Notes Page
• This is The Big Enchilada:
SPEND – lotsa – TIME
ON IT!
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.”
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
“Create a Cause, not
a ‘business.’”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
“In the funky village, real
competition no longer revolves
around marketshare. We are
competing for attention –
mindshare and heartshare.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“Consumers don’t simply buy products,
they buy attitudes as well. When
confronted with proliferation and
diversity, choices become increasingly
informed by belief. [Consumers] want to
know who is behind the products that
they buy. They want to know the
company. They want to know
what you think.”
Jesper Kunde, Corporate Religion
Brand = Special =
Passion = Plot =
Compelling
Mythology = Cause =
Connection = Caring
T.T.D./Assignment Y2K
Write an essay on
“Who we are.”*
* Jesper Kunde, Corporate Religion
Notes Page
500 words.
• [And then: 10 words.]
• DO IT!
Brand Outside
Reprise
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Master E-Commerce!
S3: Women Rule! (and the elderly)
S4: Design Rules! (too)
S5: It’s the Experience!
Net: Glorious Age of the BRAND!
[“Incrementalism
is innovation’s
worst enemy.”
Nicholas Negroponte]
Lead the Customer: Why Tough
Guts!
Failures!
Re-invention via ecommerce:
Why Tough
Total commitment to total
enterprise [and supply
chain] reinvention!
Yo, C.D.O.!!!!!!!!
Women’s Market: Why Tough
Encompassing
Attitude
CULTURAL!
Design: Why Tough
True-believer-dom-ship
Encompassing/Cultural
Ing-ing/Experience: Why Tough
What’s the
Plot?/Total
Reorientation
Brand Power: Why Tough
Way of Life
Forever!
Passion Rules!
Touches Everything!
It Am Me [Personal!]
Message :
Not for the Faint
of Heart!*
*Weenies need not apply
Brand Leadership
Passion Rules!
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
“The challenge for IBM, AT&T and
other mainstream companies is to
re-instill a sense of adventure in
recruits.”
Burke Stinson, AT&T
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
Talent “War,” Marketplace “War”
“The successful company has to
create an environment that imbues
its employees with a sense of
passion.”
Joe Nocera, eCompany, on David Pottruck
Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF
AT RISK EVERY DAY!