Lessons in Leadership:
Tom Peters Seminar2001
RollerCoaster Days:
Learning to
Rock & Roll!
Providence/05.09.2001
More at …
tompeters.com
Slides from this seminar;
Master Presentation, for in-depth;
annotated Special Presentations
[Women Rule!, Design!, etc.].
“Cool Friends” (referenced in seminar).
Discussions re this stuff.
Calendar of events.
Lavender text in this file is a link.
“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
“In 25 years, you’ll
probably be able to get the
sum total of all human
knowledge on a personal
device.”
Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T]
[Barron’s 11.13.2000]
“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)
<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
“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!)
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge
customers on the attack.
2. Time cannot be sacrificed for better quality,
lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire
leading technology. Our job is to provide the technology
and products our customers need.
4. Success is achieved by leading change,
not waiting for it.
5. We are paranoid about our leadership – willing to
cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
I Believe …
1. Change will accelerate. DRAMATICALLY.
2. We will RE-INVENT THE WORLD IN THE
NEXT TWO GENERATIONS. (Business …
Health Care … Politics … Fundamentals of
Human Interaction.)
3. OPPORTUNITIES are matchless.
4. You are either … ON THE BUS …
or … OFF THE BUS.
5. THIS IS ALL GREAT FUN! I WANT
TO PLAY! AND YOU?
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
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 the old
ones out.”
Dee Hock
“When asked to name just one big merger
that had lived up to expectations, Leon
Cooperman, former cochairman of
Goldman Sachs’ Investment Policy
I’m sure
there are success stories
out there, but at this
moment I draw a blank.”
Committee, answered:
Mark Sirower, The Synergy Trap
“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
Lessons from the Bees!
“Since merger mania is now the rage, what lessons can
the bees teach us? A simple one: Merging is not in
nature. [Nature’s] process is the exact opposite: one of
growth, fragmentation and dispersal. There is no
megalomania, no merging for merging’s sake. The
point is that unlike corporations, which just get bigger,
bee colonies know when the time has come to split up
into smaller colonies which can grow value faster.
What the bees are telling us is that the
corporate world has got it all wrong.”
David Lascelles, Co-director of The Centre for the
Study of Financial Innovation [UK]
The [New] Ge Way
DYB.com
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
RM: “A lot of companies in the
Valley fail.”
RN: “Maybe not enough fail.”
RM: “What do you mean by that?”
RN: “Whenever you fail, it means
you’re trying new things.”
Source: Fast Company
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
Built to Last v. Built to Flip
“The problem with Built to Last is that it’s a
romantic notion. Large companies are
incapable of ongoing innovation, of
ongoing flexibility.”
“Increasingly, successful businesses will
be ephemeral. They will be built to yield
something of value – and once that value
has been exhausted, they will vanish.”
Fast Company (03-00)
CEOs appointed after 1985 are 3X
more likely to be fired than CEOs
appointed before 1985
34% of F100 companies have
replaced their CEOs since 1995
Warren Bennis, MIT Sloan Management Review
Destroy
to Create!
Message:
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut
… 10,000 Jobs”
“Middle-level and senior
managers are expected to be
the principal targets of the job
cutbacks.”
Source: The New York Times (07.29.2000)
White Collar
Revolution!
108 X 5
vs.
8 X 1*
* 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!
80,000??
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
“Don’t own nothin’ if
you can help it. If you
can, rent your shoes.”
F.G.
Cisco, Dell =
Brand-owning companies
who sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism [e.g.: Cisco owns 2 of 38
assembly plants]
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
So what will be the
Basic Building
Block of the
New Org?
Every job done in
W.C.W. is also done
“outside” … for profit!
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
Credo: W.W.P.F.
“WORK
WORTH
PAYING
FOR”
New Orleans
April 2000:
NAPM
You are the …
Rock Stars
of the
B2B Age!
“P.S.F.”: Summary
H.V.A. Projects (100%)
Pioneer Clients
WOW Work (see below)
Hot “Talent” (see below)
“Adventurous” “culture”
Proprietary Point of View (Methodology)
W.W.P.F. (100%)/Outside Clients (25%++)
When: Now!
09.11.2000: HP bids
$18,000,000,000
for
PricewaterhouseCoopers
Consulting business!
(31K bods)
[“These days, building
the best server isn’t
enough. That’s the
price of entry.”
Ann Livermore, Hewlett Packard]
% Rev From Service:
… IBM
… HP …
Sun????
GE
(80%)
(80%)
Maybe one [or more]
of your “PSFs”
becomes the tail that
wags the dog?????
[E.g.: engineering, IS-logisticscustomer service]
Mystery Co.
Turnkey.
Collections.
Flexible sourcing.
Packaging.
Merchandising.
Promotion.
Design.
Systems & Site mgt.
The Raw Material …
The WOW
Project!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
Your Current Project?
1. Another day’s work/Pays the
rent.
4. Of value.
7. Pretty Damn Cool/Definitely
subversive.
10. WE AIM TO CHANGE THE
WORLD. (Insane!/Insanely
Great!/WOW!)
Radicalize
Audiences!*
My GOAL:
*Hint: These are Radical times!
Brand Inside
Brand You:
Distinct …
or
Extinct
“New Economy
changes how
firms treat
layoffs”
Headline, USA Today (03.19.2001)
New World of Work
< 1 in 10 F500
#1: Manpower Inc.
Freelancers/I.C.: 16M-25M
Temps: 3M (incl. CEOs & lawyers)
Microbusinesses: 12M-27M
Total: 31M-55M
Source: Daniel Pink, Free Agent Nation
“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
Invent. Reinvent. Repeat.
Source: HP banner ad
Work-Life Balance
Madeleine McGrath
& the London
Suicide Hotline
Brand Inside
Brand Talent: The
Great War for Talent
The Case
“When land was the
productive asset, nations
battled over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
“We have
transitioned from an
asset-based strategy
to a talent-based
strategy.”
Jeff Skilling, CEO, Enron
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)
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)
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
“We value engineers like
professional athletes. We
value great people at 10
times an average person
in their function.”
Jerry Yang, Yahoo
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]
“Talented people are less likely
to wait their turn. We used to
view young people as trainees;
now they are authorities. Arguably
this is the first time the older generation
can – and must – leverage the younger
generation very early in their careers.”
Ed Michaels, War for Talent (05.17.00)
6. Diversity
Mess Rules!
“Where do good new ideas come
from? That’s simple! From
differences. Creativity comes
from unlikely juxtapositions.
The best way to maximize differences
is to mix ages, cultures and
disciplines.”
Nicholas Negroponte
“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
It’s Girls, Stupid!
1996: 8.4M women, 6.7M men in college (est:
9.2 to 6.9 in 2007); more women than men in
high-level math and science courses
More girls in student govt., honor societies;
girls read more books, outperform boys in
artistic and musical ability, study abroad in
higher numbers
Boys do rule: crime, alcohol, drugs, failure to
do homework (4:1)
Source: The Atlantic Monthly (May2000)
Read This!
“Winning the Talent War
for Women: Sometimes It
Takes a Revolution”
Douglas McCracken, HBR [11-12/2000]
“Deloitte was doing a great job of hiring highperforming women; in fact, women often earned
higher performance ratings than men in their first
years with the firm. Yet the percentage of women
decreased with step up the career ladder. … Most
women weren’t leaving to raise families; they
had weighed their options in Deloitte’s maledominated culture and found them wanting.
Many, dissatisfied with a culture they perceived as
endemic to professional service firms, switched
professions.”
Douglas McCracken, “Winning the Talent War for Women” [HBR]
“The process of assigning plum
accounts was largely unexamined. …
Male partners made assumptions:
‘I wouldn’t put her on that kind of
company because it’s a tough
manufacturing environment.’ ‘That
client is difficult to deal with.’ ‘Travel
puts too much pressure on women.’ ”
Douglas McCracken, “Winning the Talent War for
Women” [HBR]
Okay, you think I’ve gone tooooo far.
DO ANY
OF YOU SUFFER
FROM TOO
MUCH TALENT?
How about this:
63 of 2,500 top earners in F500
8% Big 5 partners
14% partners at top 250 law firms
43% new med students; 26% med
faculty; 7% deans
Source: Susan Estrich, Sex and Power
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
Axiom: Never hire
anyone without an
aberration in their
background!
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
“Firms will not ‘manage the
careers’ of their employees. They
will provide opportunities to
enable the employee to develop
identity and adaptability and
thus be in charge of his or her
own career.”
Tim Hall et al., “The New Protean Career Contract”
10. Leading Genius
We are all unique!
Beware Lurking HR Types …
One size
NEVER fits all.
One size fits
one. Period.
48 Players =
48 Projects =
48 different success
measures
MantraM3
Talent = Brand
What’s your company’s …
Employee Value Proposition, per Ed
Michaels et al., The War for Talent
EVP = Challenge,
professional growth,
respect, satisfaction,
opportunity, reward
[EVP = “The company’s
fingerprint” = B.P.]
Source: Ed Michaels et al., The War for Talent
HR Folks: YOU – not
“marketing” - “OWN”
THE “BRAND
PROMISE”!
(If you wish.)
FindDevelop-Mentor
Goal of the Year No. 1*:
ONE Extraordinary
Person.
*CEO, large financial advisory firm, April 2001
It’s your
fault!*
*Sam Culbert
Truth
1000X
more important in times of
Madness!
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
“This is all I
‘know’ in the
world!”
Tom Peters
THE IDEA
Find a
Fellow Freak
Faraway
“4Fs”:
World’s Biggest Waste …
Selling “Up”
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?
Is It …
Fix these bloody customer problems that
have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young
division GM on …
using the Internet/Internet Speed to revisit
the entire process of how we get customer
input – before and during the fact – into the
heart of the Product Design Process?
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!
“Fail faster.
Succeed sooner.”
David Kelley/IDEO
“Learn not to
be careful”
Photographer Diane Arbus
to her students (Careful = The sidelines,
per Harriet Rubin in The Princessa)
THE SOFT STUFF
Connect!
Message: It’s
Community
Organizing, stupid!
See: Saul Alinsky’s
Rules for Radicals
“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
“It is impossible to claim that all good teachers
use similar techniques: some lecture nonstop
and others speak very little; some stay close to
their material and others loose the imagination;
some teach with the carrot and others with the
stick. But in every instance, good teachers
share one trait: a strong sense of personal
identity infuses their work. ‘Dr. A is really
there when he teaches.’ ‘Mr. B has such
enthusiasm for his subject.’ You can tell
that this is really Prof. C’s life.’ ”
Parker Palmer, The Courage to Teach
BOTTOM LINE
The Enemy!
Joe J. Jones
1942 – 2001
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T
HIM!
LET
Characteristics of the “Also rans”*
“Minimize risk”
“Respect the chain of
command”
“Support the boss”
“Make budget”
*Fortune, article on
“Most Admired Global Corporations”
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Brand Inside
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
Button-down Org
•
•
•
•
•
•
•
H.S.D.E.
Acquire for market share
Suck up to biggest customers
Pursue “strategic vendors”
Bigger is better
Accept assignments as given
Hire 4.0s from “top schools”
Promote when they’ve “paid
their dues”
• Appoint a “prestigious” board
•
•
•
•
•
•
•
• Hang out with my pals
• R.A.F.
• Be “professional” at all
times/Honor thine elders
•
•
•
•
.
Acquire for innovation
Partner with cool customers
Seek out pioneering vendors
Break it up … to refresh
Reframe all tasks to innovate
Hire “intriguing,” wherever
Promote tomorrow if the work
product is weird and WOW
Appoint an interesting,
headstrong board
Take a freak to lunch today
F.F.F.
Stay loose, stay cool/The hell
with thine elders
Message: TAKE
SOMEONE NEW &
WEIRD TO LUNCH
TODAY OR TOMORROW.
[Inundate yourself with weird.]
“But don’t we
need some
grout between
the tiles?”
?????
“Come up with three
‘Crazy Ideas,’ one
of which might
work.”
Fr Timothy Radcliffe,
Master of the Dominicans,
to his friars
N.W.O.:
•
•
•
•
•
•
•
Was
Pine-paneled Office
•
Address: 1 Big Man Plaza •
Secretary
•
Suit
•
Formal
•
Rank conscious
•
Pretense (“Failures are •
for fools.”)
•
• I love “Yes men”
•
• Self-contained
Is
Is
Seat 9B, UA233
Address: Anne@Corp.com
Typing: 60 WPM
Casual M-F
Approachable
We are a HOT Team
Screwing up is as normal
as breathing
I love Misfits!
I love partners
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity 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
“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, 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
Brand Outside
Strategy 1:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
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: “Price a structured
trade,” per John Arnold, 26: Early
1999: 30 times a day. 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 (1/2001)
COMMUNITY
SERVICES!/
CUSTOMER
CONTROL!
Tomorrow Today: Cisco!
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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:
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
Simplicity!
“Revenues on the Web
are determined
almost completely by
usability.”
Jakob Nielsen (The Economist 04.28.01)
SWA
Simple!!!!!!!!!!!! (customers call
because the process is so easy they can’t
believe they’re done)
30% of revenues directly from
site (vs. 6% for others)
Source: Business Week (09.00)
RADICAL
STRATEGIES
REQUIRED
“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]
GE & the Web
Purchasing: 2000: $6B;
2001: $15B
Sales: 1999: $1B;
2000: $7B; 2001: $20B+
Source: Business 2.0 (05.01)
“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.”
Ray Lane, Kleiner Perkins
A DREAMER’S
MEDIUM!
“There is no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much
practice,” said the Queen. “When I was
your age, I always did it for half an
hour a day. Why, sometimes I’ve
believed as many as six impossible
things before breakfast.”
Lewis Carroll
I’net …
allows you to
dream dreams
you could never
have dreamed
before!
…
Message: Survivors will
move all their operations
to the Web. Now. Web =
Encompassing … or else.
Only idiots
pull in their
Message 2001:
[investment] horns
during a downturn.
Brand Outside
Strategy 2:
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
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
(!!!)
Women … 50+%
of Web
users; 6 of 10 new users; 83%
of wired women are primary
decision makers for family
healthcare, finances,
education.
Source: Business Week; Jupiter Communications
$4.8T > Japan
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!*
[* 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.”
“Men seem like loose cannons. Men
always move faster through a store’s
aisles. Men spend less time looking. They
usually don’t like asking where things are.
You’ll see a man move impatiently
through a store to the section he wants,
pick something up, and then, almost
abruptly he’s ready to buy. … For a
man, ignoring the price tag is almost
a sign of virility.”
Paco Underhill, Why
We Buy* (*Buy this book!)
Women and Healthcare
Women are … more dissatisfied,
frustrated by the way they are treated and
spoken down to by physicians, seek
more information, are more pressed for
time … and make 75% of health care
decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care
employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be
listened to, to be taken seriously,
to read about it, to think about it.
Women do not want … an
in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC
Davis (Cause: Guys are “in and out” of
stocks more often; women choose
carefully and hold on for the long term)
Marketing to Women: Help Them
Save Time!
80% … work
86% … cook
58% … run errands with kids
38% … take child to school
21% … go to the gym
21% … take outside classes
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
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?”
THIS JUST MIGHT BE THE BIGGEST
“THING” IN THIS SEMINAR.
THINK
ABOUT IT!]
[PLEASE:
Psssst! Wanna
see my “porn”
collection?
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
“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
Brand Outside
Strategy 3:
Welcome to
“Old World”!
“‘Age Power’ will rule
st
the 21 century.
“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%)
[ 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
*Italy, first time in human history
Source: Ken Dychtwald, Age Power
No: “Target Marketing”
Yes: “Target
Innovation” & “Target
Delivery Systems”
50% to 36%:
Protect Environment > Economic
Growth.
And #3: GREEN?????:
58% to 34%: Protect Plants &
Animals > Preserve Private
Property Rights.
Roll back National Monuments:
24% Yes; 65% No.
Brand Outside
Strategy 4:
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
“What’s imperative is the
creation of a style that
becomes a culture linking
you to the community. You
can only do that through
good design.” – Anita Roddick
Source: Design Council [UK]
“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
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
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
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.
I
LOVE
my ZYLISS
Garlic Peeler!
Design “is” … WHY I
GET MAD.
MAD.
Wanted: Dead
[preferably] or Alive:
THE DESIGNER OF
MY RADIO SHACK
PHONE. Major
Reward!
“I’m just going to come right out
and say it: Ericsson
lost
$2.3B on mobile phone
handsets last year
because its products
are ugly.”
Peter Martin (FT 04.24.01)
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.
Great design =
One-page
business plan (Jim
Horan)
Life 101: Deals & Contracts
What are the 5 (not, 4, not 6) Main Points?
Please summarize on ONE page.
(ENGLISH, PLEASE.)
(Let the bloody lawyers and agents do their masturbatory
acts on the “last 98%.”)
Understand that if it’s “good,” we’ll all be
healthy & wealthy & wise; if it’s bad,
somebody’s lawyer will figure a Way Out …
fast. (McK: If you ever have a Problem, we’re gone tomorrow a.m.)
Design Rules!
[Literally]
Palm Beach County’s U.C.B.*
[*Utterly Confusing Ballot]
Message: Design is
the wellspring of
branding. Great design
takes guts and is “soul
deep.”
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 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
“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 = ?
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!
HP Revisited
PWC Consultants lead Business
Re-invention Process (“Experience
Economy”)
Fabulous Customer Service (“Service
Economy”)
Terrific Servers (“Goods Economy”)
Brand Outside
Strategy 6:
BRAND POWER!
“WHO ARE
YOU [these days] ?”
TP to Client
“The idea that business is just a numbers
affair has always struck me as preposterous.
For one thing, I’ve never been particularly
good at numbers, but I think I’ve done a
reasonable job with feelings. And I’m
convinced that it is feelings – and
feelings alone – that account for the
success of the Virgin brand in all of
its myriad forms.”
Richard Branson
“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 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
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
Remember!
Talent = Brand*
* And don’t forget Hal R.
A&P Fun
in the Sun Store
Edgartown MA:
DO THE EMPLOYEES
BUY THIS ACT
?
“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!
“WHO ARE
WE?”
WHAT’S
OUR
STORY?
“It’s a question of how to marshal our resources. I’d
like us to be
really great in four or five
areas. We have to make some hard choices.
we’ve got to get a
story about science that’s
completely understandable. To get
“The big challenge is,
money in wholesale amounts, you’ve got to sell
concepts.”
Larry Small, Smithsonian Institution
“EXACTLY
HOW AM I/
ARE WE
DIFFERENT?”
“ WHY DOES IT
MATTER TO
THE CLIENT?”
Message: REAL Branding is personal.
REAL Branding is integrity. REAL
Branding is consistency & freshness.
REAL Branding is the answer to WHO
ARE WE? WHY ARE WE HERE? REAL
Branding is why I/you/we [all] get out of
bed in the morning. REAL Branding
can’t be faked. REAL Branding is
a systemic, 24/7, all departments,
all hands affair.
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a
Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a
company (Exemplar #1: Charles Schwab)
“As Ministers of The
Republic of Tea, our
not-so-covert mission
is to carry out a Tea
Revolution.”
Ron Rubin & Stuart Avery Gold,
success@life
“Our free and open immigration policies
welcome all who wish to flee the tyranny of
coffee crazed lives and escape the frazzled fast
paced race-to-stay-in-one-place existence that
it fuels. In our tiny land, we have come to learn
that coffee is about speeding up and losing
sight, while tea is about slowing down and
taking a look. Because tea is not just a
beverage, it is a consciousness altering
substance that allows for a way of getting in
touch with and taking pleasure from the beauty
and the wonder that life has to offer.”
Ron Rubin & Stuart Avery Gold, success@life
Brand Leadership: ENTHUSIASM RULES!
“I am a
dispenser of
enthusiasm.”
Ben Zander:
“Entusiasmatore”
Word invented by Silvio Berlusconi, meaning
enthusiast-salesman
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.]
“Let’s make a
dent in the
universe.”
Steve Jobs
I Believe …
1. Change will accelerate. DRAMATICALLY.
2. We will RE-INVENT THE WORLD IN THE
NEXT TWO GENERATIONS. (Business …
Health Care … Politics … Fundamentals of
Human Interaction.)
3. OPPORTUNITIES are matchless.
4. You are either … ON THE BUS …
or … OFF THE BUS.
5. THIS IS ALL GREAT FUN! I WANT
TO PLAY! AND YOU?