The Challenge: To Create More Value in All Negotiations

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X.always

MASTER

PART TWO

10 MARCH 2007

Tom Peters’ X25*

EXCELLENCE.

ALWAYS.

XAlways.

MASTER/PART 2 .1O March 2007

* In Search of Excellence 1982-2007

VALUE

ADDED

#8

EXCELLENCE.

VALUE ADDED.

UP THE LADDER.

EXCELLENCE.

VALUE-ADDED LADDER I.

SOLVE IT.

And the “M” Stands for … ?

Gerstner’s IBM:

“Systems

Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global Services*

(*Integrated Systems $55B

Services Corp.):

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is to expand tech’s borders by pushing users —and entire industries —toward radically different business models.

The payoff for IBM would be access to an ocean of revenue —Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” — Fortune

“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catchup. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever.

Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.”

—Narayana Murthy, chairman’s letter, Infosys Annual Report

“Big Brown’s New Bag: UPS

Aims to Be the

Traffic

Manager for

Corporate

America”

—Headline/ BW /2004

“SCS”/Supply Chain

Solutions:

750 locations;

$2.5B; fastest growing division; 19 acquisitions, including a bank

Source: Fast Company

MasterCard

Advisors

“Security ‘devices’” to

“Turnkey security solutions”

(A/C, elevators, DIY, photo shops, etc., etc.)

Home Depot Business

ToolBox:

Payroll processing.

Credit card processing. Personnel paperwork. Mobile phones. Shipping.

Health insurance .

12K customers

(plumbers, electricians, small homebuilders, and contractors).

Source: Forbes , 0918.06

Gamechanging “Solutions”: Bet-the-Company

IBM

UPS

Xerox

MasterCard

GE

BestBuy

I. LAN Installation Co.

(3%)

II. Geek Squad.

(30%.)

III. Acquired by BestBuy.

IV.

Flagship of BestBuy

Wholesale “Solutions”

Strategy Makeover.

Huge: Customer

Satisfaction

versus

Customer

Success

Up,

Up,

Up,

Up the Value-added Ladder.

The Value-added Ladder/ STUFF ‘N’ THINGS

Goods

Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONS

Services

Goods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKING

Gamechanging

Solutions

Services

Goods

Raw Materials

Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”)

Era #2/Augmented Value

: “How our ‘it’ can add value —a ‘useful it’ ” (“Solve”)

Era #3/Complex Value Networks : “How our

‘system’ can change you and deliver

‘business advantage’ ” (“Culture-

Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

“The business of selling is not just about matching viable solutions to the customers that require them.

It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution.

One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.” *

(*E.g.: CRM failure rate/Gartner: 70%)

—Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

The Value-added Ladder/ OPPORTUNITY-SEEKING

Implemented

Gamechanging

Solutions

Services

Goods

Raw Materials

VALUE

ADDED

#8A

To The Mat:

The “5 Damn Its”

Women.

PSF.

Brand you.

R.f.a.

EXCELLENCE. ALWAYS.

EXCELLENCE.

NECESSITY.

OPPORTUNITY.

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that …

you’ve become irrelevant to your customers.”

—John Battelle/ Point/Advertising Age /07.05

Chicago:

HRMAC

Sarah:

“ Mom, what do you do?”

Mom

:

“I’m ‘overhead.’ ”

“support function” /

“cost center”/

“overhead” or …

Are you …

“ Rock

Stars of the

Age of

Talent”

EXCELLENCE.

SOLVE IT.

NO OPTION.

PSF. (PSF++)

Department Head to …

Managing

Partner,

IS

[HR, R&D, etc.]

Inc.

“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that.

We pay for ourselves, and we actually make money for the company.”

— Frank Eichorn, Director of

Credit Risk Data Management Group, Wells Fargo Home Mortgage

(Source: sas.com)

Mantra:

“Eichorn it!”

Answer:

Core Mechanism

:

“Game-changing Solutions”

PSF

(Professional Service Firm “model”/The Organizing Principle

)

+

Brand You

(“Distinct” or “Extinct”/The Talent

)

+

Wow! Projects

(“Different” vs “Better”/The Work

)

The New Enterprise Value-Added Equation/Mark2006

(1) 100%

“WOW PROJECTS”

(New Org “DNA”/“The Work”)

+

(2) Incredible

“TALENT”

Transformed into

(3) Entrepreneurial

“BRAND YOUs” and

(4) Launched on Awesome

“QUESTS FOR EXCELLENCE”

=

(5) Internal

“Rockin’ PSFs”

(Staff Depts. Morphed into Wildly

Innovative Professional Service F irms) …

(6) Which Coalesce to Transform the FEVP/Fundamental Enterprise

Value Proposition from “Superior Products & Services” to

“ENCOMPASSING SOLUTIONS” &

“GAME-CHANGING CLIENT SUCCESS”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”

(1) The Talent : “Best Roster” of Entrepreneurialminded Brand Yous.

(2) The (Virtual) Organization: Internal or

External

“PSF”/Professional Service Firm working with “Best Anywhere” = Engine of

Value Added through the Application of Creative

“Intellectual Capital”

(3) The Work Product : “Game Changer”/

“Gaspworthy” WOW Projects

Core Mechanism

:

“Game-changing Solutions”

PSF

(Professional Service Firm “model”/The Organizing Principle

)

+

Brand You

(“Distinct” or “Extinct”/The Talent

)

+

Wow!

Projects

(“Different” vs “Better”/The Work

)

Series/Reinventing Work

The Project 50: Fifty Ways To Transform

Every “Task” Into A Project That Matters

The Professional Service Firm 50: Fifty

Ways To Transform Your “Department”

Into A Professional Service Firm Whose

Trademarks Are Passion And Innovation

The Brand You 50: Fifty Ways To

Transform Yourself From An “Employee”

Into A Brand That Shouts Distinction,

Commitment, And Passion

“Astonish me!”

(SD)

.

“Build something great!”

(HY) .

“Make it immortal!”

(DO)

“Insanely great”

(SJ)

“… but I'm having a hard time imagining 300 million Brand Yous.“

“Would you call a clerk in a purchasing department at a big insurance company

"brand you"? Probably not. But what about a single Hispanic Mom, age 32, raising 3 kids in the LA area and holding

2.5 jobs to do so? I'd call her a hero, selfreliant, resilient — and a Brand You!”

Posted by tom peters at 10:16 PM, November 20, 2006

Muhammad Yunus: “All human beings are entrepreneurs.

When we were in the caves we were all self-employed … finding our food, feeding ourselves.

That’s where human history began …

As civilization came we suppressed it. ... We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”

Source: Muhammad Yunus/The News Hour—PBS/1122.2006/

The natural state of economic activity is for everyone to be an entrepreneur; modern economies hide this from us and encourage us to become employees./John/ShakespearesFool, posted

@ tompeters.com, November 22, 2006, 9:27 PM

“The older I get, and the more

I think about ‘legacy,’ the more interested I get in

‘projects’ and the less interested I am in ‘process.’

We need to liberate the human spirit. Projects do that.

We strangle on %^#*ing process.”

—media exec to TP, 0109.2007

Psf.

Bedrock.

PSF /Professional Service Firm/Beliefs

Profession: Calling/Passion to make a difference/Excellence (always) point of view: know exactly what we stand for/

“Dramatic Difference”

Client: enduring, test-the-limits relationship/Trusted advisor

Solution: Rock His-her World/ “wow” / implemented “Culture change”/

>>>>>> “satisfaction”

PSF-Bedrock

Profession/ Calling-

Excellence

(always)

Client/ enduring, test-thelimits relationship

Solution/ Rock Hisher World

PSF-Bedrock

Profession/ Calling-

Excellence

(always)

Client/ trusted advisor

Solution/ Rock Hisher World

PSF-Bedrock

Profession/ Calling-

Excellence

(always)

Client/ enduring, test-thelimits relationship

Solution/ >>>”satisfaction”

“Solutions World”:

The

Mega-PSF

Big Idea:

“Corporation” as

Mega-“PSF”

(Professional Service

Firm*)

* “Virtual” Collection of Entrepreneurially-minded

Professionals (“Talent”/“Roster”) Creating/Applying

Intellectual Capital (“Work Product”)

Core Mechanism

:

“Game-changing Solutions”

Brand You(S)

(“Distinct” or “Extinct”/The Talent

)

+

Wow! Project(s)

(“Different” vs “Better”/The Work

)

=

PSF(S)

(Professional Service Firm “model”/The Organizing Principle

)

=

“Corporation” as

“MegaPSF”

Agriculture Age

(farmers)

Industrial Age

(factory workers)

Information Age

(knowledge workers)

Conceptual Age*

(creators)

*Murakami Teruyasu: “Age of Creation Intensification”

Source: Dan Pink, A Whole New Mind

The

“PSF35”

:

Thirty-Five

Professional Service Firm

Marks of Excellence

The PSF35: The Work & The Legacy

1.

CRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)

2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia)

3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)

4. Eye-Appetite for Game-changer Projects (Excellence at Assembling

“Best Team”—Fast)

5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)

6. Small “Uneconomic” Clients with Big Aims

7. Life Is Too Short to Work with Jerks (Fire lousy clients)

8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the

Universe”—Steve Jobs)

9. Fire-on-thespot Anyone Who Says, “Law/Architecture/Consulting/

Ibanking/ Accounting/PR/Etc. has become a ‘commodity’”

10. Consistent with #9 above … DO NOT SHY AWAY FROM THE

WORD (IDEA) “RADICAL”

?????

Do good

(excellent?!)

work

Make a lot of money

Pointed

Point of

View!

R.POV8*

*Remarkable Point Of View/8 Words or less/“If you can’t state your position in eight words or less, you don’t have a position.”—SG

If you can’t write your movie idea on the back of a business card, you ain’t got a movie.”

—Samuel Goldwyn

The PSF35: The Client Experience

11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!)

12. We will seek assistance Anywhere to assemble the Best-in-

Planet Team for the Project

13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career”

14. The job’s not done until implementation is

“100.00% complete” (Those who don’t “get it” must go)

15.

IMPLEMENTATION IS NOT COMPLETE UNTIL

THE CLIENT HAS EXPERIENCED “CULTURE

CHANGE”

16.

IMPLEMENTATION IS NOT COMPLETE UNTIL

SIGNIFICANT “TECHNOLOGY TRANSFER”

HAS TAKEN PLACE-ROOT (“Teach a man to fish …”)

17.

The Final Exam: DID WE MAKE A DRAMATIC,

LASTING, GAME-CHANGING DIFFERENCE?

“The business of selling is not just about matching viable solutions to the customers that require them.

It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution .”*

(*E.g.: CRM failure rate/Gartner: 70%)

— Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

UniCredit Group/

UniCredito Italiano* **

—3 rd party measurement

—Customer-initiated measurement

—Primary $$$$ incentives

—“Factories”

—Primary Corporate Initiative

—Etc

*#13

**TP/#1

The PSF35: The People & The Leadership

18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)

19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”)

20. Early Opportunities (vs. “Wait your turn”)

21. Up or Out (Based on “Legacy”/Mentoring as much as

“Billings”/“Rainmaking”)

22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)

23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO

DAY #“R” [R = Retirement]

24. Office/Practice Leaders Evaluated Primarily on

Mentoring-Team Building Skills

25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)

26. Team Leadership Skills Valued Early

27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views

The PSF35: The Firm & The Brand

28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi)

29. Excellence+ in EXECUTION

… 100.00% of the Time

(No such thing as a “small sins”/World Series Ring to the Batboy!)

30. “Drop everything”/“Swarm” to Support a Harried-On

The Verge Team

31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR

CIRQUE DU SOLEIL

32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS)

33. Web (Technology) Obsession

34. BRAND/“LOVEMARK” MANIACS (Organize Around a Point of View Worth BROADCASTING: “You must be the change you wish to see in the world”—Gandhi)

35 . PASSION! ENTHUSIASM!

(Passion & Enthusiasm have as much a place at the Head Table in a “PSF” as in a widgets factory: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe”—Jack Welch)

The PSF35: The Firm & The Brand

28.

EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi)

29. Excellence+ in

EXECUTION … 100.00% of the Time

30. “Drop everything”/“Swarm” to Support a Harried-On

The Verge Team

31.

SPEND ON R&D LIKE A TECH FIRM.

32.

A PROPRIETARY METHODOLOGY

(FBR, McKinsey,

Chiat Day, IDEO, old EDS)

33.

BRAND MANIACS

(Organize Around a Point of View Worth

BROADCASTING)

34 .

PASSION! ENTHUSIASM!

35.

EXCELLENCE. ALWAYS.

“PSF” Nirvana

Counselor

Trusted Advisor

Answer:

PSF + BY +

WP = VA

PSF + BY +

WP + DD +

E = UVA

PSF + BY +

WP + DD +

E = UVA

PSF

(Professional

Service Firm) +

BY

(Brand You) +

WP

(WOW

Projects) +

DD

(Dramatic Difference)

+

E

(Excellence) =

UVA

(Unassailable

Value-Added)

Answer:

“Big Brown’s New Bag: UPS

Aims to Be the

Traffic

Manager for

Corporate

America ”

—Headline/BW/2004

I. LAN Installation Co.

(3%)

II. Geek Squad.

(30%.)

III. Acquired by BestBuy.

IV.

Flagship of BestBuy

Wholesale “Solutions”

Strategy Makeover.

Static/Imitative

Integrity.

Quality.

Continuous Improvement.

Superior Service (Exceeds Expectations.)

Completely Satisfactory Transaction.

Smooth Evolution.

Market Share.

Dynamic/Different

Dramatic Difference!

Disruptive!

Insanely Great!

(Quality++++)

Life-(Industry-)changing Experience!

Game-changing!

WOW!

Surprise!

Delight!

Breathtaking!

Punctuated Equilibrium!

Market Creation!

EXCELLENCE

=

Flawless

EXECUTION

+ Continuous

IMPROVEMENT

+ Brilliantly Trained

PEOPLE

+

Gamechanging

QUESTS

+

WEIRD

Rosters +

GASPWORTHY

Results

EXCELLENCE.

ATTITUDE.

TRANSFORMATION.

PSF.

Are you the …

“Principal

Engine of

Value Added”

*E.g.: Your

R&D budget as robust as the New Products team?

Fleet Manager

Rolling Stock Cost

Minimization Officer vs/or

Chief of Fleet Lifetime

Value Maximization

Strategic Supply-chain Executive

Customer Experience Director

(via drivers)

“Purchasing Officer” Thrust #1:

(at All Costs*)

Cost

Minimization

Professional

?

Or/to:

Full Partner-

Leader in Lifetime

Value-added

Maximization

?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

2 m

38 s

HCare CIO :

“Technology

Executive”

(workin’ in a hospital)

Or/to:

Full-scale,

Accountable

(life or death)

Member-Partner of XYZ

Hospital’s

Senior

Healing-Services

Team

(who happens to be a techie)

Was

PSF Transformation: Credit Department/Trek

Is

Credit Dept

Hammer on dealers until they pay

AR sold to 3 rd party commercial co.

23 employees

Oversee peak AR of $70M

Identify risky dealers

Cost Center

No products

Financial Services

Make dealers successful so they

CAN pay

Trek is the commercial financial

Company

12 employees

Oversee peak AR of $160M

Identify opportunities

Profit Center

Products: Consulting, MC/Visa,

Stored value of gift cards, Gift card peripherals, Online payments

Source: John Burke/0330.06

Trapper:

<$20

per beaver pelt.

Source: WSJ

WDCP*:

$150

to remove

“problem beaver”;

$750-

$1,000

for flood-control piping … so that beavers can stay.

*

“Wildlife Damage-control Professional”

Source: WSJ

VALUE

ADDED

#8B

The

WOW!

Project.

“Let’s make a dent in the universe!”

—Steve Jobs

Your Current Project?

1. Another day’s work/Pays the rent.

4. Of value.

7. Pretty Damn Cool/Definitely

10.

subversive.

WE AIM TO CHANGE THE

WORLD.

(Insane!/Insanely

Great!/WOW!)

“Astonish me!”

(S.D)

.

“Build something great!”

(H.Y.) .

“Make it immortal!”

(D.O.)

If you are not prepared to be fired over your beliefs … you are working on the wrong project.

— TP

Will you actually remember it as worthwhile 10 years from now?”

—S.H.

You! =

Your Project

Portfolio!

A “position” is not an

“accomplishment.”

—TP

WOW!

Projects:

Nuts & Bolts

(a few)

Playmate!*

Playpen!

*Can be Client, supplier … as well as Insider

Playmate!*

Playpen!

Prototype!

*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:

F.F.F.F.

(Find a Fellow Freak Faraway)

Forward, march:

The

“Sri Lanka

Stratagem”

Where NOT to look for “Playmates”:

BIG

Division, BIG Customer,

BIG Vendor,

UP

Culture of Prototyping

“ Effective prototyping may be

the most valuable core competence

an innovative organization can hope to have.”

—Michael Schrage

Prototype mania/ maniac!*

THE PROJECT 50

Starting a

WOW!

Projects

Epidemic:

Demos, Heroes,

Stories!

Premise:

Ordering”

Systemic Change is a

Waste of Time!

“Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.”

—Richard Tanner Pascale & Jerry

Sternin, “Your Company’s Secret Change Agents,” HBR

“Some people look for things that went wrong and try to fix them.

I look for things that went right, and try to build off them.”

—Bob Stone

(Mr ReGo)

Demos!

Heroes!

Stories!

Demo = Story

“A key – perhaps the key – to leadership is the effective communication of a story.”

—Howard Gardner, Leading Minds:

An Anatomy of Leadership

Best story wins!

REAL Org Change: Demos & Models

(“Model

Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers

(Props!)/

Chroniclers

(Writers, Videographers, Pamphleteers, Etc.)/

Cheerleaders & Recognition

(Pos>>Neg, Volume)/

New Language

(Hot/Emotional/WOW)/

Seekers

(networking mania)/

Protectors

/

Support Groups

/

End Runs —“Pull Strategy”

(weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/

Field “Real

People” Focus

(3 COs) (long way away)/

Speed

(O.O.D.A. Loops —act before the “bad guys” can react)

C.f., Bob Stone, Lessons from an Uncivil Servant

JKC

1. Scour for renegades; wine & dine.

2. Go outside for funds.

“Make your own

McKinsey”

(AP)

Build a “School on top of a school”/Continuing-

Exec Ed (The Parallel

Universe Strategy)

Stories … Paint me a picture … Story

“infrastructure” … Demos

… Quick prototypes …

Experiments … Heroes …

Renegades … Skunkworks

… Demo Funds … V.C.

… G.M.

… Roster … Portfolio …

Stone’s Rules … JKC’s Rules

Tempo: He who has the quickest

O.O.D.A. Loops* wins!

*Observe. Orient. Decide. Act. / Col. John Boyd

Subversive Change

Be(very)ware “genetic constraints” (history’s looong arm)

You must “do” Gandhi

Hire weird (fulltime or temp)

Find the extant crazies (troll for them via offers to join weird project teams)

Create a (quiet) “Crazies Club”/Keep extendin’ the Web

Create “boondocks projects” by the truckload (with partners of every flavor)

Understand: Yours is a “protection racket”

Sky High Standards!! (There’s a deadly serious reason for

“all this”—life or death)

TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway;

Kelly Johnson; John Boyd

Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.”

—Margaret Mead

SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?”

TP: “Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ ” *

* “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”

VALUE

ADDED

#8C

EXCELLENCE.

VALUE-ADDED LADDER II.

EXPERIENCE IT.

“ Experiences are as distinct from services as services are from goods.”

—Joe Pine & Jim 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 43year-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

“ Club Med

is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ”

Source: Jean-Marie Dru, Disruption

WHAT CAN BROWN

DO FOR YOU?

Up,

Up,

Up,

Up the Value-added Ladder.

The Value-added Ladder/ MEMORABLE CONNECTION

Spellbinding

Experiences

Gamechanging Solutions

Services

Goods

Raw Materials

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/

“Exceeded Expectations” vs.

“Great Vacation”/

“Great Conference”/

“Operation Personal

Renewal”

Warren Goes

Shopping …

Q: “Why did you buy Jordan’s

Furniture?”

A: “Jordan’s is spectacular.

It’s all showmanship.”

Source:

Warren Buffet interview/

Boston Sunday Globe/12.05.2004

C O*

*Chief e

X perience Officer

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, Unique Now ... or Never [on the excellence of

Nokia, Nike, Lego, Virgin et al.]

Extraction & Goods:

Male dominance

Services &

Experiences:

Female dominance

“ … focus on

‘engagement,’ not

‘experience’ …”

—Martin Buber, I and Thou

(from Steve Yastrow,

, 1927

We )

Steinbeck.

Reductionism,

Perils Of.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into being—an entity which is more than the sum of the fish plus the fisherman.

The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies.

The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

"A cynic is a man who knows the price of everything and the value of nothing"

—Oscar Wilde

EXCELLENCE.

EXPERIENCE.

BONUS.

Where Are Your

“2-cent Candies”?

Beltramo’s checkout.

SFFD door-to-door firehazard check.

Carpet installer booties.

Singapore candies @

Immigration

And You?

Stockholm:

blanket at outside table

(August)

The …

Jim Jeffords oversight!

F L O W E R

P O W E R

“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”

—Henry Clay

VALUE

ADDED

#8D

EXCELLENCE.

DRAMATIC.

DIFFERENCE.

DOABLE.

“The ‘surplus society’ has a surplus of companies, employing similar similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and s imilar quality.”

—Kjell

Nordström and Jonas Ridderstråle, Funky Business

This is not a

“mature category.”

This is an

un

distinguished

category.”

“When we did it

‘right’ it was still pretty ordinary.”

—Barry Gibbons on “Nightmare No. 1”

$415

/SqFt/Wal*Mart

$798

/SqFt/Whole

Foods

#1/100

“ Best Companies to

Work for” / 2005

Wegmans

7X.

730A-

800P.

F12A

.

*

*

’93-’03/10 yr annual return: CB: 29%; WM: 17%;

HD: 16%. Mkt Cap: 48% p.a.

“It’s simple, really,

Tom. Hire for

 s

,

and, above all, promote for

 s.”

—Starbucks middle manager/field

A man without a smiling face must not open a shop.”

—Chinese Proverb

EXCELLENCE.

#1T.

Donnelly’s

Weather Strip

Service

Weymouth MA

EXCELLENCE.

#1T.

Jim’s

Group

Jim Penman/“Empire Builders”/

Jan/Feb 2006/Australia

MT /

Jim’s Group

:

Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees

(Australia, NZ, UK).

Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

The “Missing 900M”

Will the Boat Sink the

Water: The Life of

China’s Peasants

—C hen Guidi and Wu Chuntao

EXCELLENCE.

#1T.

Cirque du Soleil!

And the Winner is …

1. Audacity of Vision

2. Innovation/R&D/Design

3. Talent Acquisition &

Development

4. Resultant “Experience”

5. Strategic Alliances

6. Operations

7. Financial Management

8. Overall/Sustaining Excellence

9. “Wow!”

10.

Lovemark!

“Every time we come to a comfort zone, we will find a way out.” “No Cloning.” “‘Reinvent the brand’ with each new show.”

“A typical day at the office for me begins by asking, ‘What is impossible that I am going to do today?’”

—Daniel Lamarre, president,

Cirque du Soleil

EXCELLENCE.

NO EXCUSES.

A store is a store is a store is a store

WallopWal*Mart16*

*Or: Why it’s so ABSURDLY EASY to

BEAT a

GIANT

Company

The “Small Guys” Guide: Wallop Wal*Mart16

* Niche-aimed.

(Never, ever “all things for all people,” a “mini-

Wal*Mart.)

*

Never attack the monsters head on!

(Instead steal niche business and lukewarm customers.)

* “Dramatically

Different”

(La Difference ... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS

WHERE MOST MIDGETS COME UP SHORT.)

*

Compete on value/experience/intimacy, not price.

(You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

*

Emotional bond with Clients, Vendors.

(BEAT THE BIGGIES

ON EMOTION/CONNECTION!!)

“This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman-

Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and

Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror.

The thing that all these companies have in common is that they have nothing in common .

They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken —so it’s no longer remarkable when you decide to do it.”

—Seth Godin, Fast Company

The “Small Gu y s” Guide: Wallop Wal*Mart16

*

Hands-on, emotional leadership.

(“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible

Experiences!”)

*

A community star!

(“Sell” local-ness per se. Sell the hell out of it!)

*

An incredible experience, from the first to last moment —and then in the follow-up!

(“These guys are cool! They ‘get’ me! They love me!”)

*

DESIGN DRIVEN!

(“Design” is a premier weapon-inpursuit-of-the sublime for small-ish enterprises, including the professional services.)

The “Small Guys” Guide: Wallop Wal*Mart16

*

Employer of choice.

(A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)

*

Sophisticated use of information technology

. (Small“ish” is no excuse for “small aims”/execution in IS/IT!)

*

Web-power!

(The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)

*

Innovative!

(Must keep renewing and expanding and revising and reimagining “the promise” to employees, the customer, the community.)

The “Small Guys” Guide: Wallop Wal*Mart16

*

Brand-Lovemark*

(*Kevin Roberts)

Maniacs

!

(“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regionalniche “lovemark.”)

*

Focus on women-as-clients.

(Most don’t. How stupid.)

*

Excellence!

(A small player … per me … has no right or reason to exist unless they are in Relentless

Pursuit of Excellence. One earns the right —one damn day and client experience at a time!

—to beat the Big Guys in your chosen niche!)

tom peters:

what

I’ve Learned about “Small

Business”

Passion for PRODUCT.

OBSESSION With Product .

LOVE The Product.

Aim To Be “ONLY ONES WHO DO WHAT WE DO.”

Keep ADDIN’ Stuff.

Invest “UNWISELY” in R&D.

Reside Permanently In The DISCOMFORT Zone.

“Unhealthy” PARANOIA Is A Good Thing.

Add Clients That PUSH-PULL.

SELL.

SELL. SELL.

SELL.

Go For Broke: CUSTOMER CONTACT PEOPLE.

PERFECTION: Customer Contact People.

Hire for ATTITUDE.

INVITE On An Adventure.

GREAT CFO/Biz Guy-Gal.

NASTY CFO/Biz Guy-Gal.

QUADRANGULAR LEADERSHIP: Visionary-Talent Fanatic-

Project Manager-I.P.M.

(I.P.M. = Inspired Profit Mechanic)

Seminars + Travel: 65%

Research & Writing: 40-50% *

Admin/“Stuff”: 15%

*Greater than 100%; considerable research-writing is performed on the road

GREAT Logo.

DESIGN!

“OVERDO” Marketing Materials.

WOMEN Roar. WOMEN Rule. WOMEN Buy.

Diversity = $$$$$$

Be RELENTLESS.

Cut And RUN.

Product Includes-Features the PACKAGING.

Define Your DRAMATIC DIFFERENCE (R.P.O.V.8)

Best STORY Wins.

DRESS For Success.

First Goal: AMUSE Yourself.

Know YOURSELF.

DON’T Do Stuff You Hate.

“Over-invest” In RELATIONSHIPS.

(R.O.I.R.: Return On Investment in Relationships)

SYSTEMATICALLY “Manage” Relationships.

“Work” The SUPPORT PEOPLE In Client Orgs.

BLOG As If Your Life Depended On It.

SOPHISTICATED Use Of Infotech.

RESPONSE To Problems.

Make ’Em PAY.

CLOSE The Sale.

Invest BIGTIME In PR.

Media FRIENDLY.

Live-ToSCHMOOZE.

Fun/Laughter = $$$$

MBWA: Stay In Touch.

“You Must Be The Change You Wish

To See In The World”/ GANDHI

5K For 5M.

Your CALENDAR Never Lies.

OUT: Pastels.

IN: T e c h n i c o l o r

JUST SAY “NO” TO C.E.O.: CIO /Chief Innovation

Officer. CSO /Chief Sales Officer. CWO /

Chief Wow Officer

EXCELLENCE Is Very Cool.

“MICRO-MANAGE” Your Reputation.

Wear Your Integrity On Your SLEEVE.

KEEP Your Promises.

EXECUTION !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

“A Man Without A Smiling Face

MUST NOT Open His Shop.”

RECOGNITION!

Work HARD, Not Smart.

“Insanely Great.” THE STANDARD.

A man without a smiling face must not open a shop.”

—Chinese Proverb

Tom/2006/Q97-Q100

Study more.

Renew more.

Tailor more.

Offer more.

Listen more.

Market more.

Practice more.

Challenge more.

Socialize more.

Smile more.

Follow-up more.

Plan execution more.

Cost control more .

The Fab Five: What Every Small Biz Needs

Success

=

DDMMPR/

"D-squared, Msquared, PR” =

DramDiff

+

Money-Financial

Acumen

+ Good “Marketing”

Instincts

+

Stellar People

+

Resilience

Hmmm …

Bacteria.

(“Left tail” limits.)

Productivity of small.

Failure rate of Big Mergers.

Failure rate of Big Companies.

Terrorists.

Galbraith vs Hayek.

Productivity Pandemic

IMAOA: Institute of

Modest Advances in

(Many, Many)

Ordinary

Activities

“While many people big oil finds with big companies, over the years about

80 percent

of the oil found in the United States has been brought in by wildcatters such as Mr Findley, says Larry Nation, spokesman for the American

Association of Petroleum

Geologists.”

WSJ, “Wildcat Producer Sparks Oil

Boom in Montana,” 0405.2006

A Few Biases You Should Know About

* I am not a macro-economist.

* I am wholly biased by 30 years (1970-2000) in Silicon Valley

* I would rather work for e

Bay than BankAmerica.

.

* I believe that the Giant Merger Game is the single greatest waste of energy in the world of business.

* Economies of scale are wildly over-rated.

* I find the entire notion of “career” to be disturbing and a little silly.

* I find the notion of “built to last” hilarious.

* Between 1965 and 1980 I turned 179.9 degrees from “Mr Big

Government” to “Mr ‘Cool’ Entrepreneur.” (Thank you,

Frank Perdue.)

* Joseph Schumpeter (“gales of creative destruction”) and F.A. Hayek are my economist “gods”; JK Galbraith is my bête noir.

* “Innovation” is a wonderfully messy & chaotic process—not amenable to “strategic plans.”

*I believe in Luck. (Fooled by Randomness —best book

I’ve ever read.)

Small Giants:

Companies That

Choose To Be

Great Instead Of

Big

—by Bo Burlingham

Small Giants/Bo Burlingham

"First, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full range of choices they had about the type of company they would create."

"Second, the leaders had overcome the enormous pressures on successful companies to take paths they had not chosen and did not necessarily want to follow."

"Third, each company had an extraordinarily intimate relationship with the local city, town, or county in which it did business — a relationship that went well beyond the usual concept of ‘giving back.'"

"Fourth, they cultivated exceptionally intimate relationships with customers and suppliers , based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises."

Small Giants/Bo Burlingham

"Fifth, the companies also had what struck me as unusually intimate workplaces ."

"Sixth, I was impressed by the variety of corporate structures and modes of governance that these companies had come up with."

"Finally, I noticed the passion that the leaders brought to what the company did. They loved the subject matter , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."

“We share the Zingerman’s experience selling food that makes you happy, giving service that makes you smile—in passionate pursuit of our mission, showing love and caring in all our actions to enrich as many lives as we possibly can.”

—Zingerman’s Guide to Giving Great Service /

Ari Weinzweig/Ann Arbor MI

The Small*Mart

Revolution: How

Local Businesses

Are Beating Local

Competition

—Michael Shuman

I [“Bacteria Man”] HEREBY PLEDGE:

When asked, “What are some examples of companies stepping up to today’s challenges?” … I will …

NEVER

AGAIN

… offer an example of a

Giant Company; instead I’ll refer to

Cirque du Soleil , Donnelly’s Weather Strip

Service , 3K tanning salons , 10.6M women-owned businesses (or the typically/95+% female recipients of micro-lending) …*

*There is more to Biz Life than Giant Cos … LOTS MORE … that “hidden 99%”

Q: Why isn’t the mainstream business press interested in the “missing 90%” of the Economy

?

A(?): (1) Ad revenue.

(2) Hard work.

Grameen Bank/Mohammed Yunus

Small can be beautiful & powerful!

People first!

Trust!

Women rule!!!!!!!!

Giant forests from tiny seedlings!

Self reliance!

Community based!

Self/Small group management!

Banish the bureaucrats!

Keep it simple, stupid!

Hands on!

Etc.

Etc.

Stephen Jay Gould:

Bacteria rule!

Sizeable cases

[e.g. humans]

are virtually irrelevant anomalies.

VALUE

ADDED

#8E

EXCELLENCE.

VALUE-ADDED LADDER III.

DREAM IT.

DREAM

:

“A dream is a complete moment in the life of a client.

Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.”

—Gian Luigi Longinotti-Buitoni

The Marketing of Dreams (Dreamketing)

Dreamketing: Touching the clients’ dreams.

Dreamketing: The art of telling stories and entertaining.

Dreamketing: Promote the dream, not the product.

Dreamketing: Build the brand around the main dream.

Dreamketing: Build the “buzz,” the

“hype,” the “cult.”

Source:

Gian Luigi Longinotti-Buitoni

Furniture vs. Dreams

“We do not sell ‘furniture’ at Domain.

We sell dreams

.

This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks.

We convert ‘needs’ into ‘dreams.’

Sales are the inevitable result.”

— Judy George, Domain Home Fashions

Starbucks = Shaper of Culture:

“At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee;

it’s entertainment .”

—Howard Schultz (“The Starbucks Aesthetic,” NYT , 10.22.06)

“No longer are we only an insurance provider.

Today, we also offer our customers the products and services that help them achieve their dreams

— whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”

— Martin Feinstein,

CEO, Farmers Group

Six Market Profiles

1. Adventures for Sale

2. The Market for Togetherness,

Friendship and Love

3. The Market for Care

4. The Who-Am-I Market

5. The Market for Peace of Mind

6. The Market for Convictions

Rolf Jensen/ The Dream Society: How the Coming Shift from

Information to Imagination Will Transform Your Business

Six Market Profiles

1. Adventures for Sale/

IBM-UPS

2. The Market for Togetherness, Friendship and Love/

IBM-UPS

3. The Market for Care/

IBM-UPS

4. The Who-Am-I Market/

IBM-UPS

5. The Market for Peace of Mind/

IBM-UPS

6. The Market for Convictions/

IBM-UPS

Rolf Jensen/ The Dream Society: How the Coming Shift from

Information to Imagination Will Transform Your Business

Up,

Up,

Up,

Up the Value-added Ladder.

The Value-added Ladder/ EMOTION

Dreams Come True

Spellbinding Experiences

Gamechanging Solutions

Services

Goods

Raw Materials

The (NEW) Value-added Ladder

Dreams Come True

Spellbinding Experiences

Gamechanging Solutions

Services

Goods

Raw Materials

C

*Chief Dream Merchant

“Dreams Come

True”:

IBM

“ Dreams Come True”:

IBM

UPS

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer.

We stand facing the fifth kind of society: the

Dream Society.

… Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.”

Rolf Jensen/ The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your Business

VALUE

ADDED

#8F

EXCELLENCE.

VALUE-ADDED LADDER IV.

LOVE IT.

“Brands have run out of juice. They’re dead.”

—Kevin Roberts/Saatchi & Saatchi

Kevin Roberts:

Lovemarks

!

Brand …………………………………………………. Lovemark

Recognized by consumers ………………. Loved by People

Generic ………………………………………………… Personal

Presents a narrative ………………….. Creates a Love story

The promise of quality ……………… A touch of Sensuality

Symbolic ………………………………………………….. Iconic

Defined ………………………………………………….. Infused

Statement ………………………………………………….. Story

Defined attributes ……………………... Wrapped in Mystery

Values ………………………………………………………. Spirit

Professional …………………………... Passionately Creative

Advertising agency ………………………….. Ideas company

Source: Kevin Roberts, Lovemarks

“ When we were working through the essentials of a

Lovemark,

Mystery

was always at the top of the list.”

— Lovemarks: The Future Beyond Brands , Kevin Roberts

“Lovemarks are owned by the people who love them.”

— Lovemarks: The Future Beyond

Brands, Kevin Roberts

Tattoo Brand

: What % of users would tattoo the brand name on their body?

Top 10 “Tattoo Brands”*

Harley .… 18.9%

Disney .... 14.8

Coke …. 7.7

Google .... 6.6

Pepsi .... 6.1

Rolex …. 5.6

Nike …. 4.6

Adidas …. 3.1

Absolut …. 2.6

Nintendo …. 1.5

*

BRANDsense: Build Powerful Brands through Touch,

Taste, Smell, Sight, and Sound , Martin Lindstrom

Top 10 “Tattoo Brands”*

Harley .… 18.9%

Disney .... 14.8

Coke …. 7.7

Google .... 6.6

Pepsi .... 6.1

Rolex …. 5.6

Your name here … ??

Nike …. 4.6

Adidas …. 3.1

Absolut …. 2.6

Nintendo …. 1.5

*BRANDsense: Build Powerful Brands through Touch,

Taste, Smell, Sight, and Sound, Martin Lindstrom

Up,

Up,

Up,

Up the Value-added Ladder.

The Value-added Ladder/ ECSTASY

Lovemark

Dreams Come True

Spellbinding Experiences

Gamechanging Solutions

Services

Goods

Raw Materials

C O*

*Chief

Lovemar k Officer

Damn it …

Lovemark?!

IBM

UPS

PSF

Logistics “Department”

HR “Department”

Up,

Up,

Up,

Up the Value-added Ladder.

Ladder.2006: 4 of 7!

Lovemark

Dreams Come True

Spellbinding Experiences

Gamechanging Solutions

Services

Goods

Raw Materials

VALUE

ADDED

#8G

EXCELLENCE.

SOUL I.

THE STORY.

“Storytelling is the core of culture.”

— Branded Nation: The Marketing of Megachurch,

College Inc., and Museumworld , James Twitchell

Best story wins!

Market Power =

Story Power

C O*

*Chief

Storytelling

Officer

“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 to how we work with others.

Companies will thrive on the basis of their stories and myths.

Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen Institute for Future Studies

VALUE

ADDED

#8H

EXCELLENCE.

SOUL II.

DESIGN.

TP:

Franchise Lost!

How many of you really

[600]

crave

a new Chevy?”

NYC/IIR/061205

All Equal Except …

“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.

Design is the only thing that differentiates one product from another in the marketplace.”

—Norio Ohga

“Design is treated like a religion at BMW.”

—Fortune

“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

“With its carefully conceived mix of colors and textures, aromas and music,

Starbucks is more indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of

Convenience or Ford was to the Age of Mass

Production —the touchstone success story, the exemplar of … the aesthetic imperative. …

‘Every

Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.”

-—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

Marketing “Magic”*

The “Missing 95%”:

The Unconscious!

*E.g.: ZMET/Zaltman Metaphor Evaluation Technique

Westin’s …

Heavenly

Bed

C O *

*Chief

Design

Officer

Hard is soft.

Soft is hard.

“The Mexican Sierra has 17 plus 15 plus 9 spines in the dorsal fin. These can easily be counted. But if the sierra strikes on the line so that our hands are burned, if the fish sounds and nearly escapes and finally comes in over the rail, his colors pulsing and his tail beating the air, a whole new relational externality has come into being—an entity which is more than the sum of the fish plus the fisherman.

The only way to count the spines of the sierra unaffected by this second relational reality is to sit in a laboratory, open an evil-smelling jar, remove a stiff colorless fish from the formalin solution, count the spines and write the truth. There you have recorded a reality which cannot be assailed—probably the least important reality concerning the fish or yourself. … It is good to know what you are doing. The man with this pickled fish has set down one truth and recorded in his experience many lies.

The fish is not that color, that texture, that dead, nor does he smell that way.” —John Steinbeck

THE

DESIGN49

EXCELLENCE.

SYSTEMS.

DESIGN.

K.I.S.S.

“One bank is currently claiming to … ‘

leverage its global footprint’ to provide effective financial solutions for its customers by providing a gateway to diverse markets.”

—Charles Handy

“I assume that it is just saying that it is there to

‘help its customers wherever they are’.”

—Charles Handy

EXCELLENCE.

SYSTEMS.

DESIGN.

K.I.S.S.

“Between the local people and the top [of

FEMA] seem to be about seven or eight layers of people who need to get a life.”

—Mayor Bill White, Houston

450/8

Grunge Removal 101

Ellie Mae

"A business unit strategy should be less than fifty pages long and should be easy to understand.

Its essence should be describable in one page ... If you can't describe your strategy in twenty minutes, simply and in plain language, you haven't got a plan.”

—Larry Bossidy

“Seek honest, minimalist management.

Look for companies run by a team that explains things clearly and briefly. …

You can tell a lot about the firm by reading an annual report or two.

If management can’t explain the business in plain English, move on to another firm.

If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.”

—Seth Jayson, “Stocks for the

Lazy Investor,” The Motley Fool

First Steps: “Beauty Contest”!

1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form.

2. Rate the selected doc on a scale of

1 to 10 [1 = Bureaucratica

Obscuranta/Sucks; 10 = Work of

Art] on four dimensions:

Beauty. Grace.

Clarity. Simplicity.

3. Re-invent!

4. Repeat, with a new selection, every 15 working days.

EXCELLENCE.

SYSTEMS.

DESIGN.

K.I.S.S.

“ I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy right. With their limited resources, they have to rely with laser-like focus on doing one thing very well.”

—Jack Welch/

Fortune /04.05

Lee’s Rule:

Run

It off a

Blackberry!

VALUE

ADDED

#8I

EXCELLENCE.

NEW VALUE

EQUATION.

NEW “C-levels”.

C O*

*Chief

Revenue

Officer

C O*

*Chief e

X perience Officer

C

*Chief Dream Merchant

C O*

*Chief

Festivals

Officer

C

*Chief Portal Impresario

C O*

*Chief

Conversations

Officer

C O*

*Chief

Lovemark

Officer

C O*

*Chief

Seduction

Officer

C O*

*Chief

Storytelling

Officer

C O *

*Chief

Design

Officer

C O*

*Chief talent acquisition Officer

C O*

*Chief freaks acquisition Officer

C O*

*Chief quest-meister

C O*

*Chief

Thrills

Officer

C O*

*Chief

Transcendence

Officer

C

*Chief

WOW

Officer

O*

C O*

*Chief

!

Officer

EXCELLENCE.

WHAT MATTERS.

“What Isn’t

Matter Is What

Matters”

—section title, Branded Nation: The Marketing of Megachurch,

College Inc., and Museumworld , James Twitchell

VA “Teaching Moment”

“ Andy pointed to a molding, about halfway up the wall …”

The Boot … and

Timberland

The Tomato/

Farmer … and

Campbell’s

VALUE

ADDED

#9

To The Mat:

The “5 Damn Its”

Women.

PSF.

Brand you.

R.f.a.

EXCELLENCE. ALWAYS.

EXCELLENCE.

ALWAYS.

WOMEN.

BOOMERS.

GEEZERS.

OPPORTUNITY.

$$$$$$$$$$$.

ENORMOUS.

Tom Peters/11.02.2006/Version.153

not.

Yet.

Done.

women.

BOOMERS.

GEEZERS.

women.

BOOMERS.

GEEZERS.

Amazon Reviewer:

MB book]

“‘Trends’

[TPis old news!”

(1 of 5 stars)

TP: “Repeating it doesn’t make it

‘old.’

It ain’t old if it hasn’t been implemented!”

What the hell do I have to do to make my point?

Tom Peters/10.10.2006

The Copenhagen (Self) Pact re “This Topic”:

*Early!

*Loud!

*Repetitive!

*Aggressive!

*Unfriendly!/rude!/ insulting!

women.

BOOMERS.

GEEZERS.

women.

“Forget

China

,

India

and the

Internet

: Economic

Growth Is Driven by

Women

.”

—Headline,

Economist , April 15, 2006, Leader, page 14

Women’s Trifecta+

*

Buy

*

Wealth

*

Lead

+

ECLIPSE OF MALES

(Old/Retire; Young/Poorly educated)

Women’s Trifecta+

*Buy/ all

*Wealth/ all

*Lead/ better

+Eclipse of males/ whoops

(Retire-old/Poorly educated-young)

1.

Women’s CONSUMER GOODS purchases .

2.

Women’s COMMERCIAL GOODS purchases .

3.

WOMEN ARE THE MARKET. Not an “initiative.”

4. Women-owned BUSINESSES.

(absolute #s, acceleration, relative growth.)

5.

Women’s “brand” of LEADERSHIP SKILLS.

6.

women’s strengths match needs of the new

“value-added ladder.”

7.

Women’s DRAMATICALLY INCREASING-commanding

WEALTH —absolute, relative.

(Jobs. Longevity.

Education. Entrepreneurial. Decline of BOYS. Retirement of

MEN/Senior MEN.)

8. DEMOGRAPHIC TSUNAMI . WOMEN. Women as solo HEADs-OF-HOUSEHOLD. THE WOMaN-

BOOMER-GEEZER. LOoooNG-TERM PHENOMENON.

Global phenomenon.

9. SPEED of “change.” mother of all “megatrends.”

1.

Participation rate/2 of 3 new jobs, last

30 years.

2. Male workforce departures

/SENIOR male workforce departures.

3.

Shrinking pay gap/same jobs.

4. More senior positions. Greater decisionmaking/expenditure/org design authority

.

More line jobs.

5. Female solo head-of-household growing.

6.

Longevity

.

7.

Education

.

8. More effective money management

.

Not. Yet. Done.*

Loyalty programs: M F “Difference” =

Yawning gap (173+ degrees)

Forced to do it: e.g., a division aimed at Boomer Women … Exclusively.

Just say no to “trickle up”: Why have the 5% chase the 95%?)

Men think they’re doing their share (helping, sure, but the buck stops with her); busy, busy, busy —think Jim’s Group)

New forms of living together, playing together as aging proceeds

(“commune”, Beacon Hill Assn, telemedicine, etc., etc., etc.)

“Grab ’em early & keep ’em”: Total Unmitigated Crap

(TP: 100% brand switch. 100%.)

“They didn’t take it seriously” —German bank exec, Bonn, F

This is not a $%^&ing “program.” This is “NEW Life 101.” This is Soooo Big it Staggers the Imagination. (Will be paramount

“trend” for 20 years.)

*The Copenhagen Pact

women.

BOOMERS.

GEEZERS.

Boomers.

geezers.

not.

Yet.

Done.

Boomers’-Geezers’ Trifecta

*Buy/ all

*Wealth/ all

*time left/ lots

Boomers’-Geezers’-Women’s Trifecta+

*Buy/ all

*Wealth/ all

*time left/ lots

*Eclipse of males/ retire-die

Only 50% done!

!!!!!!!!!!!!!!!!!

“People turning 50 today have more than half of their adult life ahead of them.”

—Bill Novelli, 50+: Igniting a Revolution to Reinvent America

not.

Yet.

Done.

Just Say “No” (!):

Launch an

“Initiative.”

Objections

Don’t believe the DATA

Don’t believe the ENORMITY of the opportunity

Don’t believe the UBIQUITY of the opportunity

Think they “GET IT”

See it as an “Initiative”

Flies in the face of CONVENTIONAL MARKETING WISDOM

Don’t see it as … THE ESSENCE OF STRATEGIC POSITIONING

Fail to understandTAKE FULL ADVANTAGE “Everything must be changed” (It’s a “Culture” issue)

Look at it analytically; miss the need for OBSESSION

Subconsciously threatened!!??

Occasion to make JOKES

You either believe

“all this.”

Or don’t.

*

*No middle ground at the level of Extreme Commitment I’m suggesting

Don’t “get it”

=

Stupid

*

*and you are not stupid

E-nor-mous

Strat-eg-ic opp-or-tunity

Amazon Reviewer:

MB book]

“‘Trends’

[TPis old news!”

(1 of 5 stars)

TP: “Repeating it doesn’t make it

‘old.’

It ain’t old if it hasn’t been implemented

!”

VALUE

ADDED

#9A

EXCELLENCE.

NEW MARKETS.

ENORMOUS.

OPPORTUNITIES.

women.

BOOMERS.

GEEZERS.

EXCELLENCE.

OPPORTUNITY.

ENORMOUS.

WOMEN.

Idiot”

is too kind a word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

* 1 of 14 Board of Directors members is a woman

(not an exec); 2 of 7 Exec Team members are … Indians.

(Source: FT /24-25 June.)

** Approximately

85% of Unilever’s products are purchased by … women.

“That’s a

VERY diverse team.”

—Patrick Cescau, CEO, Unilever * **

* 1 of 14 Board of Directors members is a woman

(not an exec); 2 of 7 Exec Team members are … Indians.

(Source: FT /24-25 June.)

** Approximately 85% of Unilever’s products are purchased by … women.

“That’s a

VERY sick man.”

—Tom Peters

Idiots”

is too kind a word.

????????

Weenie of the year, 2006 …

????????

EXCELLENCE.

FOUND.

DUH.

“ To be a leader in consumer products, it’s critical to have leaders who represent the population we serve.”

—Steve Reinemund/PepsiCo

Indra Nooyi

A[nother] Delightful Blinding

Flash of the Obvious!* **

“P&G does more than half its business outside the U.S., so [CEO A.G.] Lafley has recast his top executive group to be 50% non-

American.”

— Fortune , 1218.06

*I’ll take it!

**Women next? 85%?

“A couple of years ago, the Los Angeles division

[of John Laing Homes] decided it was going to become the king of Hispanic housing

[sarcasm], because our research shows there’s a huge demand. They were right to go after that market, but I looked around the room, and it’s full of white guys. They were telling us how much they know about

Hispanic buyers, and they were making it up.

… We’re getting better now.

We hired two smart, young Hispanic managers. … We are working through a partnership with [former HUD secretary]

Henry Cisneros. We’re learning, but we have a long way to go.” —Larry Webb

“EXCELLENCE.”

AARGH.

200

Good Thinking, Guys!

“Kodak Sharpens Digital Focus

On Its Best Customers:

Women”

—Page 1 Headline/ WSJ / 0705

EXCELLENCE.

OPPORTUNITY.

ENORMOUS.

WOMEN.

Just Say No.

“Women are the majority market”

—Fara Warner/ The Power of the Purse

“Women make 80 percent of all buying decisions. They control

$7 trillion in purchasing power.

By 2010 they'll control more than $13 trillion in private wealth. And that's just in

America. Globally, women's soaring economic power is changing business forever

.

—Fara Warner

?????????

Home Furnishings … 94%

Vacations … 92%

(Adventure Travel … 70%/ $55B travel equipment)

Houses … 91%

D.I.Y.

(major “home projects”)

… 80%

Consumer Electronics … 51%

(66% home computers)

Cars … 68% (90%)

All consumer purchases … 83%

Bank Account … 89%

Household investment decisions … 67%

Small business loans/biz starts … 70%

Health Care … 80%

Women

Household spending:

80%

Investment decisions:

53%

Home improvement purchase decisions:

80%

New cars:

60%+

Computers:

60%

Managers and professionals, overall:

51%

New businesses started:

70% *

(*Women-owned businesses as a share of all new businesses: Employee growth, 3X; Sales growth, 4X.)

Source: Marti Barletta, PrimeTime Women (2007)

USA/F.Stats: Short ’n (Very) Sweet

>50% of stock ownership, $13T total wealth (2X in 15 years)

>$7T consumer & biz spending (>50% GDP; > Japan GDP);

>80% consumer spdg (Consumer = 70% all spdg)

57% BA degrees (2002); = ed & social strata, no wage gap

60% Internet users; >50% primary users of electronic equipment

>50% biz trips

WimBiz: Employees > F500; 10M+: 33% all US Biz

Pay from 62% in 1980 to 80% today; equal if education, social status, etc are equal

60% work; 46M (divorced, widowed, never married)

Source: Fara Warner,

The Power of the Purse

Women > 50% of Household Income in >50% of households.

In 48% of the 55% of households/married couples, women provide >50% of income. 27% of households are headed by a single female. 75% of married female execs with the rank of VP or above out earn their spouse. Women control 51% of private wealth in the U.S.; head 40% of households with

>$600K assets; 47% of market investors are women.

Major Credit Union: pre Y2K, modal customer was 53-year-old family man; today, 46-year-old single working woman.

Commercial: 51% purchasing managers are women.

Women make >80% consumer purchases; businesswomen make >90% of household purchasing decisions. Women:

70% of travel decisions; purchase 57% of consumer electronics; write 80% of personal checks; purchase >50% of cars (primary influence >80%).

Source:

Don’t Think Pink: What Really Makes Women Buy—and How to

Increase Your Share of This Crucial Market , Lisa Johnson & Andrea Learned

1970-1998

Men’s median income: +0.6%

Women’s median income:

+ 63%

Source: Martha Barletta, Marketing to Women

Commercial Purchasing Power

Purchasing mgrs. & agents: 51%

HR: >>50%

Admin officers: >50%

Source: Martha Barletta, Marketing to Women

Internet users:

60%

*

*“manage their lives and the lives of their families” —

Kelley Mooney, president, Resource Interactive

Source: Fara Warner, The Power of the Purse

The “91% Factor”!

More than 9 in 10 women age 35 - 49 say they either make or at least equally influence their household purchases of home electronics .

Source: Andrea Learned, co-author, Don’t Think Pink

91%

women:

ADVERTISERS “DON’T

UNDERSTAND US .”

(58% “ANNOYED.”)

Source: Greenfield Online for Arnold’s Women’s Insight

Team (Martha Barletta, Marketing to Women)

“The most significant variable in every sales situation is the gender the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” of

—Jeffery Tobias Halter, Selling to Men, Selling to Women

Thanks,

Marti Barletta

!

The Perfect Answer

Jill and Jack buy slacks in black…

She knows more about the

[Volvo] than the sales her at the door. But how is she treated? As if she has a slightly has car; and if she brought a male friend time hard of hearing no right who greets low IQ , is

, and really to be buying a luxury with her, odds are 10:1 that the clueless salesperson spent most of his speaking to him .” man

—Selling to Men, Selling to Women , Jeffery Tobias Halter

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

Week #8:

testosterone time!

*

*Louann Brizendine, Neuropsychiatrist,

The Female Brain

. Week

#8/Testosterone surge kills : communication cells

; grows : sex & aggression cells

. Also/E.g.: 10X to 20X, F eye contact/look for emotional signals by 3 months. Later: F, more sentences that begin with “Let’s …”; more likely to take turns

“ 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

“Women don’t buy brands.

They join them.”

EVEolution

Selling to men: The

TRANSACTION Model

Selling to Women: The

RELATIONAL Model

Source:

Selling to Men, Selling to Women

, Jeffery Tobias Halter

Editorial/Men: Tables, rankings.*

Editorial/Women:

Narratives

that cohere.*

*Redwood (UK)

Purchasing Patterns

Women: Harder to convince; more loyal once convinced.

Men: Snap decision; fickle.

Source: Martha Barletta, Marketing to Women

“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

“A woman can effortlessly speak 6,000 to 8,000 words a day, use an additional

2,000-3,000 vocal sounds and 8,000-

10,000 gestures and body signals. A man utters 2,000-4,000 words, 1,000-

2,000 vocal sounds and makes 2,000-

3,000 body language signals. other words, women

In communicate three times more than men.”

—Barbara and Allan Pease (from Selling to Men, Selling to Women , Jeffery Tobias Halter)

2.6

vs.

“Women come out better on almost every count as investors …

They are less likely to hold a losing investment too long, and less likely to wait too long to sell a winner; they’re also less likely to put too much money into a single investment or to buy a reputedly hot stock without doing sufficient research.”

Source: The Merrill report: “When It Comes to Investing,

Gender A Strong Influence on Behavior.”/ Atlantic

Discover, by accident,

“blue ocean”

[women’s financial needs]

!

Ignore your

[Dean Witter] boss!

Sell 750,000 copies of your latest book to Wells Fargo

Home Mortgage!

Source: the David Bach story, including

Smart Women Finish Rich, per IBD (01.08.07)

1. Men and women are different.

2. Very different.

3. VERY, VERY DIFFERENT .

4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.

5. Women buy lotsa stuff.

6.

WOMEN BUY A-L-L THE STUFF .

7. Women’s Market = Opportunity No. 1.

8. Men are (STILL) in charge.

9. MEN ARE … TOTALLY, HOPELESSLY

CLUELESS ABOUT WOMEN.

10.

Women’s

Market =

Opportunity

No. 1.

P-l-e-a-s-e Read …

Fara Warner

:

The Power of the Purse

Cases! Cases! Cases!

McDonald’s

(“mom-centered” to “majority consumer”; not via kids)

Home Depot

(“Do it [everything!] Herself”)

P&G

(more than “house cleaner”)

DeBeers

(“right-hand rings”/$4B)

AXA Financial

Kodak

(women = “emotional centers of the household”)

Nike

(> jock endorsements; new def sports; majority consumer)

Avon

Bratz

(young girls want “friends,” not a blond stereotype)

Source:

Fara Warner/ The Power of the Purse

Faith, Lys, Marti, Fara …

Targeting the New

Professional Woman:

How to Market and Sell to

Today’s 57 Million

Working Women

—Gerry Myers

“Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the

Tokyo stockmarket’s rise of 13%.”

—Economist , April 15

Power of the

Purse: McDonald’s

Discovers Women!

12.2002: $-344M

*International

*Build

*Men & Children

Source: Fara Warner, The Power of the Purse the Woman Inside the Mom”

,

“From Minority to Majority: McDonald’s Discovers

“Mostly Moms”

“Women were either ignored in favor of focusing on men— generally considered the industry’s most frequent users and therefore its most important consumers—or they were cast in the role of moms who were simply conduits to their children.”

—Fara Warner, The Power of the Purse , “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

“We simply had stopped being relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the

Purse , “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

“Women

[in women-only focus groups] told us that all moms are women, but not all women are moms—so why weren’t we trying to reach all women? We realized we should be finding the woman inside the mom.”

—Carol Koepke, marketing director (Fara Warner, The Power of the Purse

“From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

,

“McDonald’s shifted its strategy toward women from one of

‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.”

—Fara Warner,

The Power of the Purse , “From Minority to Majority:

McDonald’s Discovers the Woman Inside the Mom”

New! New! New! New! New!

Women’s magazines

[“a medium that

McDonald’s had rarely used”]

Source: Fara Warner, The Power of the Purse the Woman Inside the Mom”

,

“From Minority to Majority: McDonald’s Discovers

Power of the

Purse: BEST BUY

Discovers Women!

“Best Buy Gets in

Touch With Its

Feminine Side: Chain wants to be much more than a toy store for big boys.”

—headline, USA Today (12.21.06)

“Instead of hitting high-tech hysteria at Best

Buy this holiday season, shoppers may notice a softer, more personal atmosphere. Music is quieter. Lights are lower. Salespeople talk to customers about their lifestyles, what they want the technology to do for them … and how they want it to fit into their homes, offices, cars. … If you need more help, one of thousands of its ‘Geek Squad’ techies will come to your home to hook stuff up.”

—USA Today, 12.21.06, “Best Buy Gets in Touch With Its

Feminine Side: Chain wants to be much more than a toy store for big boys.”

“We were a boys’ toy store designed for boys by boys.” —Julie Gilbert, VP, Best Buy

“It’s no longer the days of eight-track tapes and big speakers with the big foam that smells. The products we sell and the services we sell are about trends and fashion.” —Julie Gilbert

“Women couldn’t get anyone to help them. They weren’t treated with respect.”

—Julie Gilbert

“We’re working with the Girl Scouts, with private female colleges and others to recruit amazing women so we can delight our women customers.” —Julie Gilbert

— USA Today, 12.21.06, “Best Buy Gets in Touch With Its Feminine Side:

Chain wants to be much more than a toy store for big boys.”

“We’re working with the

Girl Scouts, private female colleges and others to recruit amazing women so we can delight our women customers.”

—Julie Gilbert, VP, Best Buy (USA Today, 12.21.06)

EXCELLENCE.

OPPORTUNITY.

WOMEN.

BUSINESS.

OWNERS.

“The growth and success of womenowned businesses is one of the most profound changes taking place in the business world today.”

— Margaret Heffernan, How She Does It

U.S. firms owned or controlled by Women:

10.6 million

(

48% of all firms)

Growth rate of Women-owned firms vs all firms:

3X

Rate of jobs created by Women-owned firms vs all firms:

2X

Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:

>1.0

Ratio of likelihood of Women-owned firms staying in business vs all firms:

>1.0

Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all firms:

2X

Source: Margaret Heffernan, How She Does It

94% of loans to …

women*

* M icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winner

PrimeTime Women: How to

Win the Hearts, Minds and

Business of Boomer Big

Spenders

—Marti Barletta

How She Does It: How Women

Entrepreneurs Are Changing the Rules of Business

Success

—Margaret Heffernan

VALUE

ADDED

#9B

WOMEN.

DOMINATE.

ECONOMIC.

GROWTH.

“Forget

China

,

India

and the

Internet

: Economic

Growth Is Driven by

Women

.”

—Headline,

Economist , April 15, 2006, Leader, page 14

“Economic Growth

Is Driven by …

Women .”

—Headline,

Economist

, April 15, 2006, Leader, page 14

“Since 1970, women have held two out of every three new jobs created.”

— FT , 10.03.2006

“ Forget China, India and the

Internet: Economic Growth Is Driven by Women .”

[Headline.]

“Even today in the modern, developed world, surveys show that parents still prefer to have a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their parents’ old age.

Yet it is time for parents to think again. Girls may now be a better investment.” “Girls get better grades in school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot more than brawn .

… And women are more likely to provide sound advice on investing their parents’ nest egg—e.g.: surveys show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in the last couple of decades. Those women have contributed more to global

GDP growth than have either new technology or the new giants, India and China.”

Source: Economist , April 15, Leader, page 14

Continuing on page 73: “ A Guide to Womenomics: The

Future of the World Economy Lies Increasingly in Female Hands .” (Headline.) More stats: Around the globe since 1980, women have filled “two new jobs for everyone taken by a man.” “Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers, and investors.” Re consumption, Goldman Sachs in Tokyo has developed an index of

115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in

“Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” A couple of final assertions: (1) It is now agreed that “the single best investment that can be made in the developing world” is educating girls. (2) Also, surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest participation rates, such as Italy and Germany, have the lowest fertility rates.

Source: Economist , April 15, page 73

Q: No. 1 contributor to developing country economic improvement?

A: More education for women.

Source: Many* (*On a related note, eBay founder Pierre Omidyar and his wife just gave $100M to Tufts —its biggest gift ever—to support micro-lending; women typically are the recipients of 90% of micro-loans because they use the $$$ more productively than men.)

Repeat: “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist , April 15

Impact! Add It Up!

Primary markets/Everything

(“Men buy things that other men will buy for women. I buy things that women want.”— successful jeweler/F. “Women are the majority market” —Fara Warner/The

Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce participation rate

(“bigger contributor to GDP growth than technology, China, India”—Economist)

Higher wages

(more seniority, promotions —even if not to

CEO; greater pay equity —even if not equal)

Business “decision makers” seniority, promotions —even if not to CEO)

Women-owned businesses

(more

(answer to the

Glass Ceiling —10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE

Women make [all] the financial decisions.

Women control [all] the wealth.

Women [substantially] outlive men.

Women start most of the new businesses.

Women’s work force participation rates have soared worldwide.

Women are closing in on “same pay for same job.”

Women are penetrating senior ranks rapidly

[even if the pace is slow for the corner office per se].

Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness & value-added imperatives.

Women are better salespersons than men.

Women buy [almost] everything—commercial as well as consumer goods.

So what exactly is … the point of men?

Not Just America …

“Boys Falling

Seven

Years

Behind Girls at GCSE Level”

—headline, Weekly Telegraph , UK, 10.25.06

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of

‘womenomics,’ the economy as thought out and practiced by a woman.”

—Aude Zieseniss de Thuin, Financial Times, 10.03.2006

New World, New “Girl Power”?

“Not long ago I was talking with a group of girls at

Greenfield High, in northern New Jersey, about Mary

Pipher’s bestselling book, Reviving Ophelia . … The girls’ reaction to Ophelia was one of confusion. They disagreed with the book’s premise—that girls are robbed of vitality and self-esteem as they enter adolescence. According to

Pipher, our sexist society causes girls ‘to stifle their creative spirit and natural impulses, which ultimately destroys their self-esteem.’ ‘Who are the girls in this book?’ asked Sarah, a Greenfield sophomore. ‘I mean, I feel sorry for them, but they’re pretty much losers. We’re not at all like them.’ From what I could see, she was right. The girls I met were vital. They appeared more confident than many of the boys. They had not

‘lost their voice.’ … They neither feared competition from boys nor the consequences of out-performing them.” — Dan Kindlon , Alpha Girls

Women’s contribution to family income: major source of growing inequality

VALUE

ADDED

#9C

COROLLARY.

EXCELLENCE.

WOMEN.

RULE.

“AS LEADERS,

WOMEN

RULE:

New Studies find that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ BusinessWeek

Women’s Strengths Match New

Economy Imperatives:

Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision

making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power

as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills,

individual & group contributions equally; readily accept ambiguity; honor intuition as well as

pure “rationality”; inherently flexible; appreciate cultural diversity

.

—Judy B. Rosener,

America’s Competitive Secret: Women Managers

Women’s Negotiating Strengths

*Ability to put themselves in their counterparts’ shoes

*Comprehensive, attentive and detailed communication style

*Empathy that facilitates trust-building

*Curious and attentive listening

*Less competitive attitude

*Strong sense of fairness and ability to persuade

*Proactive risk manager

*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business , “Say It

Like a Woman: Why the 21 st -century negotiator will need the female touch”

New (4 of 7) Value-added “Ladder”:

Plays to Women’s Inherent Strengths!

Lovemark/ F

Dreams Come True/ F

Spellbinding Experiences/

Gamechanging Solutions/ F

F

Services/

F

Goods/

M

Raw Materials/

M

“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

The Core Argument: Women [Ought to] Rule!

1. We are in a War for Talent.

2. The war will intensify.

3. There is a severe shortage of effective leaders at all levels.

4. Women are under-represented in our leadership ranks at or near the top.

5. Women and men are different; “new science” reinforces this view.

6. Women’s strengths match the New Economy’s leadership needs —to a striking degree.

7. Women are also the principal purchasers of goods and services —retail and commercial.

8. Ergo, women are a large part of “the answer” to the War for Talent/leadership shortage issue/opportunity.

“[Women] bring a different perspective to politics. They don’t expect to be waited on —

and in everything we do we keep our kids in mind.”

—Sarah Palin, first woman governor of Alaska (USA Today, 0104.07)

VALUE

ADDED

#9D

EXCELLENCE.

OPPORTUNITY.

ENORMOUS.

BOOMERS.

GEEZERS.

women.

BOOMERS.

GEEZERS.

!!!!!!!!!!!!!!!!!

“People turning 50 today have more than half of their adult life ahead of them.”

—Bill Novelli, 50+: Igniting a Revolution to Reinvent America

Idiots”

is too kind a word.

Stupid Fr*&^ing Idiot-Marketers!

“Critics describe evening news in unflattering terms — They’re old!

They’re set in their ways! They won’t buy iPods!”

Source: Advertising Age, 05.08.06

?????????????

?????????????

“Gen Y Sits on Top of Consumer

Food Chain: They’re savvy shopper with money and influence”

—Headline, USA Today, 1012.06

Just Say No.

1 8-44

Subject: Marketers & Stupidity

It’s 18-44, stupid!”

Subject: Marketers & Stupidity

Or is it:

“ 18-44 is stupid, stupid!”

“One particularly puzzling category of youthobsession is the highly coveted target of men

18-34, and it’s always referred to as ‘highly coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants to reach them?

Beyond fast food and beer, they don’t buy much of anything. … The theory is that if you ‘get them while they’re young, they’re yours for life.’

What nonsense!”

Marti Barletta, PrimeTime Women

2000-2010 Stats

18-44:

-1%

55+:

+21%

(55-64:

+47%

)

BoomerBucks!

Boomer turns 50: every 7 seconds. 2009: majority of

U.S. households headed by someone over 50.

2006-

2016: U.S. population up 22.9 million; 22.1 million in over-50 group. 2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Age

45-54: highest average income, $59, 021 (national average is $42,209).

FASTEST GROWING INCOME

CATEGORY: WOMEN, 55-64 (4X men in same category). Women, age 60-64: 50% still in workforce.

Highest net worth: families, 55-64

($182,000). People over 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.

Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. Next 2 decades: BOOMERS

WILL INHERIT $14 TRILLION-$25 TRILLION (“largest intergenerational transfer of wealth in history”).

—Marti Barletta, PrimeTime Women

55-64 vs 25-34

E.g.: New cars & trucks: 20% more spending. Meals at full-service restaurants:

+29%. Airfare: +38%. Sports equipment:

+58%. Motorized recreational vehicles:

+103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard services: +250% to +500%.

Source: Marti Barletta, PrimeTime Women

Average # of cars purchased per household, “lifetime”:

13

Average # of cars bought per household after the “head of household” reaches age

50:

7

Source: Marti Barletta, PrimeTime Women

3Q/2006.

$312M. (+18%.)

$1.6B. (+14%.)

Source: BusinessWeek , 1106.06, “Harley Just Keeps on

Cruisin’: Aging customers? Sure. Nostalgia brand? Definitely.

So why is the stock at a record high?”

50+

$7T wealth (70%)/

$2T annual income

50% all discretionary spending

79% own homes

40M credit card users

41% new cars/48% luxury cars

$610B healthcare spending/

74% prescription drugs

5% of advertising targets

Ken Dychtwald, Age Power: How the 21 st

Century Will Be Ruled by the New Old

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.”

—Marti Barletta,

PrimeTime Women

Median Household Net Worth

<35: $7K

35-44: $44K

45-54: $83K

55-64: $112K

65-69: $114K

70-74: $120K

>74: $100K

Source: U.S. Census

44-65: “New

Customer

Majority”

*

*45% larger than 18-43; 60% larger by 2010

Source: Ageless Marketing , David Wolfe & Robert Snyder

“The New Customer

Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.”

—David Wolfe & Robert Snyder, Ageless Marketing

“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”

— Peter Francese, founding publisher, American Demographics

Possession Experiences /“Desires for things ”/Young adulthood/to 38

Catered Experiences / “Desires to be served by others”/Middle adulthood

Being Experiences /“Desires for transcending experiences ”/Late adulthood

Source: David Wolfe and Robert Ageless Marketing

“Older people have an image problem. As a culture, we’re conditioned toward youth.

… When we think of youth, we think

‘energetic and colorful;’ when we think of middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of ‘old’ or

‘senior,’ we think either ‘exhausted and gray’ or, more likely, we just don’t think.

… The financial numbers are absolutely inarguable—the Mature

Market has the money.

Yet advertisers remain astonishingly indifferent to them.

…”

—Marti Barletta, PrimeTime Women

“Baby-boomer

Women : The

Sweetest of

Sweet Spots for

Marketers”

—David Wolfe and Robert

Snyder, Ageless Marketing

“WOMAN of the Year: She’s the most powerful consumer in America.

And as she starts to turn sixty this month, the affluent baby boomer is doing what she’s always done — redefining herself.”

—Joan Hamilton, Town & Country , JAN06

Magazine of the

Year*:

More

Source:

Advertising Age

, 1023.

2006 , “‘More’

Taps Power of 40-plus to Draw Advertisers in

Droves” (“More is breaking through advertisers’ irrational obsession with

20-somethings …”)

“Rock of Ages: Uncool But

True, the AARP

Demographic Leads the

Music Market. But Who

Will Lead It?”

Source: Headline, “Arts and Leisure,” NYT , 1126.06

“Sixty Is the New

Thirty”

—Cover/ AARP

!!!!!!!!!!!!!!!!!

“People turning 50 today have more than half of their adult life ahead of them.”

—Bill Novelli, 50+: Igniting a Revolution to Reinvent America

“‘Age Power’ will rule the 21

st

century, and we are woefully unprepared.”

Ken Dychtwald, Age Power : How the 21

Century Will Be Ruled by the New Old st

Explosion of “Stay at Home” Services

Beacon Hill Village

(>50; $580 per year; screened providers, 10%+ off; $35 to take cat and member to vet)

Geriatric care managers

($80-$200 per hour;

Nat’l Ass’n of Professional Geriatric Care Managers)

Seniors Safe@Home

(monitor client movements such as bathroom, gotten out of bed; BP, sugar levels, data screened by call center, available via

Web to children; etc)

“Road Signs of the

Times: Creating an easier-to-read typeface for aging drivers”

The New York Times

VALUE

ADDED

#9E

BONUS.

EXCELLENCE.

OPPORTUNITY.

ENORMOUS.

SINGLE-PERSON

HOUSEHOLDS.

Fastest growing demographic:

Single-person

Households

(>50% in London, Stockholm, etc.)

Source: Richard Scase

% of homes purchased by single women : 1981,

10%;2005, 20%

% of homes purchased by single men : 1981, 10%;

2005, 9%

Source: USA Today /02.15.06

Women PURCHASERS.

Women business owners.

WOMEN WEALTH CONTROLLERS.

WELL-PAID WOMEN WORKERS.

WOMEN LEADERS.

Boomer-Geezer PURCHASERS.

BOOMER-GEEZER WEALTH CONTROLLERS.

Single-person HHs (Urban)

BONUS.

EXCELLENCE.

OPPORTUNITY.

ENORMOUS.

GENERIC DEMOGRAPHIC

TSUNAMI.

(UNPRECEDENTED IN HISTORY.)

Demographic Upheaval!

1/1/2008:

60% of the Prime Work Force

(“boomers”), mostly white males, will be able to retire—at a rate of

10,000 per day

.

As of 2005:

75% of people entering the workforce are women and minorities. As of

2008, they will

“flood the management ranks” as the

PWF retires.

Programs for recruiting women and minorities with the necessary intensity: mostly AWOL.

Selling to Men, Selling to Women , Jeffery Tobias Halter

VALUE

ADDED

#9F

not.

Yet.

Done.

What the hell do I have to do to make my point?

Tom Peters

The Copenhagen (Self) Pact re “This Topic”:

*Early!

*Loud!

*Repetitive!

*Aggressive!

*Unfriendly!/rude!/ insulting!

Women’s Trifecta+

*Buy/ all

*Wealth/ all

*Lead/ better

+Eclipse of males/ whoops

(Retire-old/Poorly educated-young)

Boomers’-Geezers’ Trifecta

*Buy/ all

*Wealth/ all

*time left/ lots

Boomers’-Geezers’-Women’s Trifecta+

*Buy/ all

*Wealth/ all

*time left/ lots

*Eclipse of males/ retire-die

Just Say “No” (!):

Launch an

“Initiative.”

You either believe

“all this.”

Or don’t.

*

*No middle ground at the level of Extreme Commitment I’m suggesting

Don’t “get it”

=

Stupid

*

*and you are not stupid

E-nor-mous

Strat-eg-ic opp-or-tunity

Amazon Reviewer:

MB book]

“‘Trends’

[TPis old news!”

(1 of 5 stars)

TP: “Repeating it doesn’t make it

‘old.’

It ain’t old if it hasn’t been implemented!”

women.

BOOMERS.

GEEZERS.

VALUE

ADDED

#10

EXCELLENCE.

BIGGEST

INDUSTRY.

EMERGENCY.

OPPORTUNITY.

“What’s Really Propping

Up the Economy:

Healthcare has added 1.7 million jobs since 2001.

The rest of the private sector?

None

.”

Source: Title, cover story, BusinessWeek , 0925.2006

2 m

38 s

Q.W.P.

*

*Quality. Wellness. Prevention .

Childhood

Obesity

>

Terrorism

Bust fat docs!

“Sanitary revolution”: mortality in major cities down

55% between 1850 and 1915

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

“If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy

Neighbor and

Wash Your

Hands

. A close third would be Move, Move,

Move.” —Mark Pettus, M.D., The Savvy Patient

“The most important thing you can do to keep from getting sick is to

wash your hands

.

— CDC /National Center for Infectious Diseases

EXCELLENCE.

(HEALTHCARE.)

HEALTH.

HEALTH?

State of Healthcare/U.S.A.

*Spend more per capita

*Overall system performance/WHO: 37 th

*Relatively low life expectancy

*High # of uninsured

Source: Consulting , 07-08.06

State of Healthcare/U.S.A.

*Spend more per capita

*Overall system performance/WHO: 37 th

* Relatively low life expectancy

*High # of uninsured

Source: Consulting , 07-08.06

ISSUES.

Quality

(100K+ deaths)

“Evidence/Outcomes-based” medicine

IS/IT-in-health(care) revolution

Wellness/Prevention

Health“care” to Health “culture” transformation

Wash your hands!

Home-care

(as the population rapidly ages)

Med-school re-orientation

“Public health” emphasis

Childhood Obesity

Mind-boggling (15 years?) social-moral-technological impact of life sciences (“the Singularity”?)

H5N1

/WMDs/Environmental degradation

Risk assessment

(private, public)

Market opportunity

Public vs/+ Private responsibilities & partnerships

Africa!

(Unconscionable failure to attend to/staggering Health consequences for all)

REPORT

CARD

.

Re-imagine Healthcare: Reportcard2006

Evidence-based/Outcomesbased ……………….………...... D

Pay-forperformance ………………………………………….… D

IS/IT (general) ………………………………..………………..…. C-

Use of information (for decisionmakingmeasurement) .… C-

EMR (Electronic Medical Records) ……………………..….... D

CPOE (Computerized Physician Order Entry) ……….……. C-/D

Quality/100K+ unnecessary deaths …………..……… D-(kind)

Acute care to chronic carehome care shift ………….….... D/D-

Acute-care to Prevention/Wellness Obsession …..… F-

Patient-centric/Clientcentric………………………………….. D

Docs’ acceptance of “evidence-based” …………............… D/D-

“Revolutionary”-intensity Incentives re evidence …..……. D-

Childhood obesity epidemic …………………………….. D-

H5N1 preparedness ………………………………….…….. D

Corporate focus on Prevention/Wellness…………..…..…..... C-/D

Individual focus on Prevention/Wellness…………………..… D

Individuals’ health education/self-management …….…...…. C-

Workforce acceptance of selfresponsibility ….…….…...….. C-

Workforce transition to “Brand You” attitude……..……..….. C-/D

3 March 2006/Tom Peters

T.T.D./

ACTION.

NOW.

Visible Signs/Measures

(Creech)

TRAIN. TRAIN. TRAIN.

(P.S.)

Med school, Nursing school curriculum

(P.S.)

BOLD!/Big change EASIER than modest change

(P.S., etc.)

EXCELLENCE. ONLY. ALWAYS. DAMN IT.

EVP/Patient Safety

P.S.O.s

Fund the living hell out of it (P.S.)

CEO (etc): REFLECT IT IN CALENDAR

EMERGENCY STATUS

H.M.O.s: Big/ENORMOUS (+/-) incentives for docs, hospitals, etc., etc.

BOARD: Patient Safety Committee

BOARD: WPCC Committee

Patient Safety BALDRIDGE (POTUS?)

CERTIFICATION/RE-CERTIFICATION for One & All

(P.S., etc.)

WPOCC Rules!!!!!!!

(Wellness/

Prevention/Obesity/ChronicCare)

WPOCC: N.G.A. (AK)

INSURANCE COMPANY VISIBILITY/

SPONSORSHIP/MEGA-INCENTIVES

Awards Galore P.S./WPOCC)

BOARD Committee: H5N1

HHS: Split HC & PWO (Ontario)

Write off ½ of med school loan if “pay” with 3-5 years service in Public Health

Glamorize Family Practice, Public Health, etc.

FAT legislation?? (Almost certainly) (Density,

HFCS, Transfats, etc., etc.) (A FIRST FOR TP)

SUE the hell out of One & All re Obesity (Cigarettes II)

Research LEAP @ N.I.H. (Etc, Etc, ETC)

INCENTIVES @ SCHOOLS (BIG!!)

EMR: Intensify!!!!!!!!!!!!!

No leadership position in AHA (AMA?)

(DEANs?) (Etc?) without “Safety tour”

No Medical Chief (>150 beds?) without “Safety tour”

FORGET ABOUT ME!!! (Except

Wellness, ChroniCare)

VIGOROUSLYSUPPORT Home Care

American OBESITY = African AIDs (??)

ELIMINATE/OBLITERATE HIGH

FRUCTOSE CORN SYRUP!

ELIMINATE/OBLITERATE TRANSFATS!

(HFTC/TF = The Real “WMDs”)

FDA: Kill! Kill! Kill! (Please)

CEO Bonus: 50+%: P.S./WPOCC

OBNOXIOUS labels

Incentives for BILLBOARDS

Natl Advertising Council

PARENTING education, etc.

THIS IS NOT A

“PROGRAM”

(P.S./WPOCC)

STATE OF

EMERGENCY

Bust fat docs!

Health:

Century21.Job # 1

Quality!

Prevention!

Wellness!

Chronic care!

Childhood obesity!

H5N1!

Quality!

2 m

38 s

Welcome to the Homer Simpson Hospital a/k/a

The Killing

Fields

“When I climb Mount

Rainier I face less risk of death than

I’ll face on the operating table.”

— Don Berwick , “Six Keys to Safer Hospitals: A Set of Simple Precautions

Could Prevent 100,000 Needless Deaths Every Year,” Newsweek (1212.2005)

“Quality”:

COULD

IT TRULY BE THIS

AWFUL

?

HealthGrades/Denver:

195,000

hospital deaths per year in the U.S., 2000-2002 = 390 full jumbos/747s in the drink per year.

Comments:

“This should give you pause when you go to the hospital.”

—Dr. Kenneth Kizer,

National Quality Forum

.

“ There is little evidence that patient safety has improved in the last five years.”

—Dr. Samantha Collier

Source:

Boston Globe / 07.27.04

1,000,000

“serious medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug interactions and allergies.”

Source: Wall Street Journal /

Institute of Medicine

CDC 1998:

90,000

killed and

2,000,000

injured from hospital-caused drug errors & infections

“BAD MEDICINE: This teenager

[Jehan Nassif] died because of a medical bungle. So do 18,000 other Australians each year.

Why our hospitals keep making fatal mistakes.”

—cover, The Bulletin (Australia), 09.05.2006 (“… up to 16% of hospitalized patients will suffer an adverse event; 50% of these will be preventable and 10% of these will lead to permanent disability or death.”) (equivalent, on a per capita basis, to about

200,000 in the United States —which is about the actual U.S. number)

Dear Mr. & Mrs. Smith,

XYZ hospital regrets to inform you …….

……………………………………………………………………

……………………………………………………………………

……………………………………………………………………

……………………………………………………………………

……………………….

Sincerely,

A. S. Jackson, Administrator

T. D. Jones, M.D., Chief Medical Officer

L.S. Donald, CFO

W.N. Arnold, CIO

Reporter: “Mr Gandhi, what do you think about western civilization?”*

Gandhi: “I think it would be a very good idea.”

*Upon the occasion of Gandhi’s historic visit to England

About Time!

100,000 Lives

Campaign*

*Don Berwick/Institute for Healthcare Improvement

Childhood

Obesity >

Terrorism

Source: Mike Levitt/Secretary HHS

HEALTH

TP Recommendation #1:

Dubai Healthcare City

to

Dubai Health City*

*Cleveland Clinic and Canyon Ranch

Wash your hands.

Apply #50 sunscreen.

Banish trans fat

Banish high fructose corn syrup .

Exercise “30-7.”

Breathe .

Stockpile for H5N1 .*

(*not Tamiflu!)

Avoid hospitalization.

Take charge of your health.

“If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive impact?’ It would be a close call between Love Thy

Neighbor and

Wash Your

Hands

.

A close third would be

Move,

Move, Move .”

—Mark Pettus, M.D., The Savvy Patient

“The most important thing you can do to keep from getting sick is to

wash your hands

.

— CDC /National Center for Infectious Diseases

Primary “Success

Factors”: “Sanitary revolution”: mortality in major cities down

55% between

1850 and 1915

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

20%: not get prescriptions filled

50%: use meds inconsistently

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

Only Effective Strategy?

“Curve

Shifting”

Source: Tom Farley & Deborah Cohen,

Prescription for a Healthy Nation

“BUMP INTO FACTOR”: Extrasize portions, eat more.

Higher % shelf space snacks, more obesity. More liquor stores, more crime. High vs low fat: Japanese who emigrate to U.S. suffer 3X increase in heart disease.

Source: Tom Farley & Deborah Cohen, Prescription for a Healthy Nation

Behavioral Primacy!

E.g.: plate size, location of platters,

6.5 feet = -63%

Source: Brian Wansink, day) (

Mindless Eating

(20 lbs per year; 200 decisions per

In Search of Excellence density of FF outlets)

, office spacing and communication; Sprint;

Sprint/Overland Park KS:

Slow elevators, distant parking lots with infrequent buses, “food court” as “poorly” placed as possible, etc.

Source: New York Times

WELLNESS

Why wasn’t I “informed” until age 59?

Aging reversal!!!!

“Fixes”

Diet

Extreme exercise

Meditation

Supplements

Eliminate all alcohol

(Meds)

Health + Social combination

= 20% fewer admissions, 40% less bed occupancy

[over 65]

Source: Unicare/UK/Dr David

Lyon/Pulse, 1123.06

Market Forces

RediClinic.CheckUps.Take

Care.MinuteClinic*

(*“We treat these

16 rulesbased disorders”/ “Go-no go” tests.15 minutes.$39)

Wal*Mart.CVS.Target.

Walgreens.RiteAid

Source: FT (10.06.06); NYT (12.31.06)

VALUE

ADDED

#10A

HEALTHCARE

MEETS

HEALTH: The Case of the PLANETREE

ALLIANCE

Planetree:

A Radical Model for New

Healthcare/Healing/

Wellness Excellence

Tom Peters/17 September 2006

“It was the goal of the Planetree Unit to help patients not only get well faster but also to stay well longer.”

— Putting Patients First ,

Susan Frampton, Laura Gilpin, Patrick Charmel

“Much of our current healthcare is about

Curing is good. But curing healing is spiritual, and healing is

. better, because we can heal many people we cannot cure.”

—Leland Kaiser,

“Holistic Hospitals”

The 9 Planetree Practices

1.

The Importance of Human Interaction

2.

Informing and Empowering Diverse Populations: Consumer

Health Libraries and Patient Information

3.

Healing Partnerships: The importance of Including Friends and Family

4.

Nutrition: The Nurturing Aspect of Food

5.

Spirituality: Inner Resources for Healing

6.

Human Touch: The Essentials of Communicating

Caring Through Massage

7.

Healing Arts: Nutrition for the Soul

8.

Integrating Complementary and Alternative Practices into Conventional Care

9.

Healing Environments: Architecture and Design Conducive to Health

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

1.

The Importance of Human

Interaction

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.

Kindness is free.

Listening to patients or answering their questions costs nothing. It can be argued that negative interactions —alienating patients, being non-responsive to their needs or limiting their sense of control —can be very costly. …

Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative —requiring far more time than it would have taken to interact with them initially in a positive way.” — Putting Patients First , Susan Frampton,

Laura Gilpin, Patrick Charmel

Press Ganey Assoc:

139,380 former patients from 225 hospitals:

none

of THE top 15 factors determining

P

atient

S

atisfaction referred to patient’s health outcome

PS directly related to

Staff Interaction

PS directly correlated with

Employee

Satisfaction

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

“ Perhaps the simplest and most profound of all human interactions is KINDNESS. … But if it is so simple, it is surprising how frequently it is absent from our healthcare environments.

… Many staff members report verbal

‘abuse ’

by physicians, managers and coworkers.”

— Putting Patients First , Susan

Frampton, Laura Gilpin, Patrick Charmel

“Planetree is about human beings caring for other human beings.”

— Putting Patients First , Susan Frampton, Laura Gilpin,

Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)

2.

Informing and

Empowering Diverse

Populations: Consumer

Health Libraries and

Patient Information

Planetree Health Resources Center/1981

Planetree Classification System

Consumer Health Librarians

Volunteers

Classes, lectures

Health Fairs

Griffin’s Mobile Health Resource Center

Open Chart Policy

Patient Progress Notes

Care Coordination Conferences (Est goals, timetable, etc.)

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

3.

Healing

Partnerships: The

Importance of

Including

Friends and Family

“When hospital staff members are asked to list the attributes of the

‘perfect patient and family,’ their response is usually a passive patient with no family.”

— Putting Patients First , Susan

Frampton, Laura Gilpin, Patrick Charmel

The Patient-Family Experience

“Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.”

— Putting Patients First ,

Susan Frampton, Laura Gilpin, Patrick Charmel

“Family members, close friends and ‘significant others’ can have a far greater impact on patients’ experience of illness, and on their long-term health and happiness, than any healthcare professional.”

— Through the Patient’s Eyes

“A 7-year follow-up of women diagnosed with breast cancer showed that those who confided in at least one person in the 3 months after surgery had a 7-year survival rate of

72.4%

, as compared to

56.3% for those who didn’t have a confidant.”

—Institute for the Future

Institute of Medicine/ “Crossing the Quality Chasm”

Respect for preferences

Involvement in Decision Making

Access to care

Coordination of care

Information and education

Physical comfort

Emotional support

Involvement of Friends and Family

Continuity of care

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Care Partner Programs

(IDs, discount meals, etc.)

Unrestricted visits

(“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”)

Collaborative Care Conferences

Clinical Guidelines Discussions

Family Spaces

Pet Visits

(POP: Patients’ Own Pets)

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

4.

Nutrition:

The Nurturing

Aspect of Food

Meals are central events vs

“There, you’re fed.”

*

*Irony: Focus on “nutrition” has reduced focus on “food” and “service”

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Kitchen

Beautiful cutlery, plates, etc.

Chef reputation

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Aroma therapy

(e.g.: “smell of baking cookies”)

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

5.

Spirituality:

Inner Resources for Healing

Spirituality: Meaning and Connectedness in Life

1. Connected to supportive and caring group

2. Sense of mastery and control

3. Make meaning out of disease/ find meaning in suffering

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin: redesign chapel

(waterfall, quiet music, open prayer book)

Other : music, flowers, portable labyrinth

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

6.

Human Touch:

The Essentials of

Communicating

Caring Through

Massage

“Massage is a powerful way to communicate caring.”

— Putting Patients First ,

Susan Frampton, Laura Gilpin, Patrick Charmel

Mid-Columbia Medical Center/Center for Mind and Body

Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”)

Infant massage

Staff massage (“caring for the caregivers”)

Healing environments: chemo!

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

7.

Healing Arts:

Nutrition for the Soul

Planetree: “Environment conducive to healing”

Color!

Light!

Brilliance!

Form!

Art!

Music!

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Florence Nightingale/ Notes on

Nursing /patient’s need for beauty, windows, flowers:

“People say the effect is only on the mind. It is no such thing. The effect is on the body, too.”

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin: Music in the parking lot; professional musicians in the lobby

(7/week, 3-4hrs/day)

;

5 pianos

; volunteers

(120-140 hrs arts & entertainment per month).

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

8.

Integrating

Complementary and

Alternative Practices into Conventional Care

CAM (Complementary & Alternative Medicine):

83M in US

(42%)

CAM visits 243M, greater than to PCP

(Primary

Care Physician) (With min insurance coverage)

W-Educated-Hi inc

Don’t tell PCP

(40%)

OTA: <30% procedures used in conventional medicine have undergone

RCTs

(randomized clinical trials)

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Griffin IMC/Integrative Medicine Center

Massage

Acupuncture

Meditation

Chiropractic

Nutritional supplements

Aroma therapy

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

9.

Healing

Environments:

Architecture and

Design Conducive to Health

“Planetree Look”

Woods and natural materials

Indirect lighting

Homelike settings

Goals: Welcome patients, friends and family … Value humans over technology ..

Enable patients to participate in their care

… Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients …

Foster a connection to nature and beauty

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Sound

Texture

Lighting

Color

Smell

Taste

Sacred space

Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Access to nurses station:

“Happen to” vs

“Happen with”

Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Conclusion:

Caring/Growth

“Experience”

Care!/Love!/Spirit!

Self-Control!

Connect!/learn!/ involve!/Engage!

Understanding!/Growth!

De-stress!/heal!

Whole patient & family

& friends! be well!/stay well!

F.Y.I.

Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results:

Financially successful.

Expanding programsphysically.

Growing market share. Only hospital in “100

Best Cos to Work for”—

7 consecutive years, currently #6.

—“Five-Star Hospitals,” Joe Flower, strategy+business (#42)

Learn more about Planetree/

The Planetree Alliance:

www.planetree.org

EX

CELLE

ALW

AYS

.

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