FitLinxx
San Francisco
03.24.00
Hen scratches @
37,000 feet …
Microsoft = R.O.W.
Microsoft > GM + Ford +
Boeing + Lockheed Martin +
Deere + Caterpillar + USX +
Weyerhaeuser + Union Pacific +
Kodak + Sears + Marriott +
Safeway + Kellogg
Source: Business Week data through 5-99
Microsoft = R.O.W. (II)
Microsoft > GM + Ford Boeing + Lockheed
Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union
Pacific + Kodak + Sears + Marriott + Safeway + Kellogg
+ McDonald’s + Bank One +
General Mills + American Airlines
+ United Airlines + + Delta Air
Lines + US Airways +
Quaker Oats
Source: Yastrow Marketing (through 11-23-99)
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)
“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.
“There is probably going
to be more confusion in
the business world in the
next decade than there
has been in any decade
in history.”
Steve Case (2-00)
“We are in a
brawl with no
rules.”
Paul Allaire
S.A.V.
“Steve Ross had a
wonderful philosophy:
People get fired for
not making mistakes.”
Bob Pittman
Forget > Learn
“The problem is never
how to get new,
innovative thoughts into
your mind, but how to get
old ones out.”
Dee Hock
C.E.O.
to
C.D.O.
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“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)
Kaiser: 4.15.29
Liberty Ship
2 years
240 days
9 hours
4 days, 15 hours, 29 minutes
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
“Astonish me!” / S.D.
“Build something great!” /
H.Y.
“Immortal!” / D.O.
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
“I don’t think
there’s anything
worse than being
ordinary.”
American Beauty
1) Turn ignition key.
2) Shift into drive.
3) Press foot firmly on the
throat of mediocrity.
Source: Mercedes ad
Issue Y2K
The Great War
for Talent!
“The leaders of Great
Groups love talent and
know where to find it.
They revel in the talent
of others.”
Warren Bennis & Patricia Ward Biederman
The NAESP …
Attributes of Those Who “Made” the 10th
Grade History Book
–Committed!
–Determined to make a difference!
–Focused!
–Passionate!
–Irrational about their life’s project!
–Ahead of their time / Paradigm
busters!
–Impatient! / Action Obsessed
Attributes of Those Who “Made” the 10th Grade
History Book
–Made lots of people mad!
–Flouted the chain of command!
–Creative / Quirky / Peculiar! / Rebels! /
Irreverent!
–Masters of improv / Thrive on chaos
/ Exploit chaos!
Attributes of Those Who “Made” the 10th Grade
History Book
–Forgiveness > Permission
–Bone honest!
–Flawed as the dickens!
– “In touch” with their followers’
aspirations
–Damn good at what they do!
Just Say “No” to “Grout”!
Participant: “Don’t you need
‘grout’ between the tiles?”
“No!”
TP:
[med staff,
NFL Special Teams,waiters,
PFCs, cymbals player,
bit parts, waiters]
TP’s Ideal Job:
Head of Housekeeping!
Talent = Brand
Brand Outside
=
Brand Inside
Quality Not Enough!
“While everything may be
better, it is also increasingly
the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
“The ‘surplus society’ has a surplus of
similar companies, employing similar
people, with similar educational
backgrounds, 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
- Ziplocs
Why?
Cool!/Surprising!
Reliable!
Friendly!/Comfortable!
Aesthetically pleasing!
TP’s “Mega-marketing-trends”
Rapidly aging population!
Health fanaticism!
Environmental concerns!
Freaky independence!
Women rule!
Brand Outside
Strategy 1:
Lead the Customer!
“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
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the
Business!
$35,000,000. = ???
Dell’s Web sales …
daily
[AOL delivers
more mail than
the USPS!
Source: Fortune 2-00]
2X = 100 days
(Internet traffic)
2X = 9 months
(network capacity)
Source: Red Herring (1-00)
I-24 to 1-28: BizRate.com Online
Shopping Index [Consumer Goods]
52 Weeks:
+622%
Source: The Industry Standard/02-00
Time to 50M Users
Radio … 38 years
TV … 13 years
PC … 16 years
Internet … 4 years
Source: Business 2.0 [01-00]
Tomorrow Today: Cisco!
$7B of $10B
Save $500M (service and tech
support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms ($1B?)
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
Consumer [Health Care] Sovereignty!*
E.g.:
“Empowered consumers influenced by
medical advertising and educated by
information on the Internet are driving
demand for new vision correction
options.”
Start Up (10-99)
* “Take your White Coat and … ”
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
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
“Autoweb. Take the Wheel.”
- Advertising Age
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control of
my universe!
Swissair
e>booking
e>ticket
e>check-in
e>track
e>info
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
Control”
I am a cynic …
I am a skeptic* …
* Just ask NKA
I am in love …
… with FitLinxx
Self-control =
Engagement =
Effectiveness*
* “How Pilots Fly the Plane Varies a Lot
from Airline to Airline” (WSJ/031400);
PD on mbo
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
“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
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.
**Reinvent our marketspace!
RR on 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.”
Brand Outside
Strategy 3:
Women Rule!
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Women … 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)
$3.3T + $1.5T = $4.8T*
* Larger than Japan!
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.”
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
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
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!”
“Experiences” vs. Products
Design revolution!
Good source: Ken Dychtwald,
Age Wave
Priorities: Aging/“Elderly”
Experiences …
Convenience … Comfort
… Access … Respect!
“Any student who
combines an expertise in
gerontology with, say, an
M.B.A. or law degree will
have a license to print
money.”
Newsweek
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
ON LINE 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
AMA: Push
“Patient
Partnership”
Model????
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
Safe, On Time and …
“We defined personality as a
market niche. We seek to
amuse, to surprise, to
entertain.”
Herb Kelleher, Main Man,
LUV Airlines
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
Mantra: “Any good can be
ing-ed”
the driving experience
the pumping experience
the sitting experience
the reading experience
the washing experience
the cooking experience
Joseph Pine & James Gilmore, The Experience
Economy: Work Is Theatre & Every Business a Stage
“This is the end of the pure
product era. For instance, car
makers are beginning to
understand that the car is a
platform for delivering services
that drive the customer
experience.”
Carly Fiorina, HP @ Comdex ’99
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]
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
Brand = Special =
Passion =
Connection =
Caring*
* (Way) beyond “market research”
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“If you ask me what I have
come to do in this world, I
who am an artist, I will
reply, I am here to live my
life out loud.”
Emile Zola
“If things seem under
control, you’re just
not going
fast enough.”
Mario Andretti