Tom Peters SeminarM3
Rollercoaster Days:
Learning to
…Rock & Roll!
IMRA/Logistics2001
Orlando 01.09.01
“There will be more
confusion in the the
business world in the
next decade than in any
decade in history. And the
current pace of change will only
accelerate.”
Steve Case
“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)
Zounds: Bradlees. Wards.
Sears/89. Same-store Xmas
sales. Olds. Cherokee. CEOs @
P&G, Coca Cola, Gillette, Xerox,
Lucent, Aetna, Mattel, Chrysler
USA, Home Depot (sorta). AT&T
Breakup III. NASDAQ.
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
90% Doomed
White Collar
Revolution!
New Orleans
April 2000:
NAPM
You are the …
Rock Stars
of the
B2B Age!
Brand Inside
Brand Talent: The
Great War for Talent
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, Enron
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
“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)
So-so plant manager, $1M
per year. Pay: $110,000 plus
$60,000. Top plant manager,
$3-4M per year. Pay:
$135,000 plus $90,000. Net:
$2-3M for $50K.
Source: Ed Michaels et al., The War for
Talent, re Georgia Pacific
Women
in the ’00s:
Born to Lead!
“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
“On average, women and men
possess a number of different innate
skills. And current trends suggest
that many sectors of the twentyfirst-century economic community
are going to need the natural
talents of women.
Helen Fisher, The First Sex: The Natural Talents of
Women and How They are Changing the World
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
Brand Inside
Reprise:
THINK WEIRD: The
High Standard
Deviation Enterprise
Renewal = The Weird 10 = The “High S.D.” Enterprise/Individual
Pioneer [Weird] Acquisitions
Pioneer [Weird] Customers & Alliance Partners
[Measure the Customer-Partner Portfolios’ S.D./Weirdness Index]
Divide & Conquer/“Sell-by”
Pioneer Assignments/Pioneer Projects/Pioneer Partners
Hire Weird [Diversity]/Train Weird/Promote Weird/Pay Gobs &
Promote Fast & Cherish “Six Sigma” Talent/Appoint a Weird Board
Weed Un-weird [“One Sigma” “Talent,” etc.]
Hang out with Weird [Univ. of Weird]/Lunch with Weird/
Read & Surf Weird/Vacate Weird
R.A.F. to R.F.A. to F.F.F.
Sense of Humor [Rhapsodize Over Thine Cool Failures!]
Re-enforce a “Culture of Disrespect”/Passionate Piracy
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
“There is an ominous downside to
strategic supplier relationships. An
SSR supplier is not likely to function
as any more than a mirror to your
organization. Fringe suppliers that
offer innovative business practices
need not apply.”
Wayne Burkan, Wide Angle Vision: Beat the
Competition by Focusing on Fringe Competitors,
Lost Customers, and Rogue Employees
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“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 Businessrosecr
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
Tomorrow Today: Cisco!
90% of $20B (=$50M/day)
75% mfg. outsourced; 50% of orders
routed to supplier who ships direct
Gross margin:65%; Net margin: 28%
Annual savings in service
and support from customer
self-management: $550M
Enron eWorld: 30 times a day
(“price a structured trade”/early
1999, per John Arnold, 26); late
2000: 30 times per … minute.
Long-term gas contract, 1989: 9
months, 400+ deals; late 90s: 2
weeks, 2 per week; late 2000:
5 such deals per day
Source: www.ecompany.com (1-2/2001)
Tomorrow Today: Cisco!
90% of $20B; save $550M
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting) (45,000
customer problems a week solved via
customer collaboration)
SUMMARY:
REINVENT
EVERYTHING
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
“We’ve put the word out
to all of our suppliers: by
the end of the year [2000]
we’ll only do purchasing
over the Internet.”
John Paterson, C.P.O., IBM
[$50B from 18,000 suppliers]
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
Message: eCommerce
is not a
technology play! It is a
relationship, partnership,
organizational and
communications play, made
possible by new
technologies.
Message: There
is no such
thing as an effective B2B or
Internet-supply chain
strategy in a low-trust,
bottleneckedcommunication, six-layer
organization.
“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. …
“In a true ebusiness, customers can come to
your Website and evaluate products, be
connected to the supply chain to get
commitment for delivery and pricing. It also
includes all the tangential services like billing
and customer service, which should be
automatic and simultaneous.”
Ray Lane, Kleiner Perkins
Brand Outside
Strategy 2:
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
Design Transforms Even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Design “is” … WHAT &
WHY I LOVE.
LOVE.
Design “is” … WHY I
GET MAD.
MAD.
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.
Brand Outside
Strategy 2A:
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 = 5 [was 10]
Crate & Barrel = 8
Sharper Image = 9+
Smith & Hawken = 8+
Garnet Hill = 9
L.L. Bean = 4 [was 9+]
Colonial Williamsburg = ?
Brand Outside
Strategy 3:
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%
$4.8T > Japan
9M/27.5M/$3.6T >
Germany
OPPORTUNITY
NO.
1!
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
“Women don’t buy
brands. They
join them.”
Faith Popcorn, EVEolution
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
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!”
Speaking of
Enormous
[Missed] [Huge]
Opportunities ...
Subject: Marketers & Stupidity
It’s 18-44,
stupid!
Subject: Marketers & Stupidity
Or is it: 18-44 is
stupid, stupid!
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
Brand Outside
Strategy 4:
BRAND POWER!
“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
“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.]
“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
“WHO ARE
YOU [these days] ?”
TP to Client/11-2000
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
Message 2001
Mastering Madness!
Best Talent Wins!
eBusEx = Reinvention!
Women Rule!
Value Proposition: Who Are We?