Distinct or … Extinct
Tom Peters Seminar2000
Leading Minds/ IIR
Johannesburg
30 August 2000
Defeated Before
The Starter’s Gun!
“Track 4: Managing
Organization Change (Helping
Tired and Overworked
Professionals with Today’s
Workplace Realities)”
NAPM: “You are
the
Rock Stars
of the
B2B Age!”
Message2000
“The point is the
passion!”
Charles Handy
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
Nicholas Negroponte
Just Say No …
“I don’t intend to be
known as the ‘King of
the Tinkerers.’ ”
CEO, large financial services company
(New York, 5-99)
“There’s going to be a
fundamental change in the
global economy unlike
anything we have had since
the cavemen began bartering.”
Arnold Baker, Chief Economist,
Sandia National Laboratories
“There is probably going
to be more confusion in
the business world in the
next decade than there
has been in any decade
in history.”
Steve Case (2-00)
NOW THAT’S B-I-G!
“The period 2000-2002 will bring
the single greatest change in
worldwide economic and
business conditions since we
came down from the trees.”
David Schneider & Grady Means,
MetaCapitalism
“We are in a
brawl with no
rules.”
Paul Allaire
“Strategy meetings held
once or twice
a year” to “Strategy
meetings needed several
times a week”
Source: New York Times on Meg Whitman/eBay
The Kotler Doctrine:
70s: R.A.F.
(Ready.Aim.Fire.)
80s: R.F.A.
(Ready.Fire!Aim.)
90s-Now: F.F.F.
(Fire!Fire!Fire!)
John Roth’s “Rules” [Nortel]
1. Our strategies must be tied to leading-edge
customers on the attack.
2. Time cannot be sacrificed for better quality,
lower cost, or even better decisions.
3. It doesn’t matter whether you develop or acquire
leading technology. Our job is to provide the technology
and products our customers need.
4. Success is achieved by leading change,
not waiting for it.
5. We are paranoid about our leadership – willing to
cannibalize our own products to maintain our edge.
Source: Abridged from The Wall Street Journal (07.25.00)
“The corporation as we know it,
which is now 120 years old, is
not likely to survive the next 25
years. Legally and financially,
yes, but not structurally
and economically.”
Peter Drucker, Business 2.0 (08.00)
Tom Peters
Seminar2000
Brand Everything:
Distinct or Extinct!
Structure
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Forces @ Work I
The Destruction
Imperative!
Forget > Learn
“The problem is never
how to get new,
innovative thoughts into
your mind, but how to get
old ones out.”
Dee Hock
“It is generally much
easier to kill an
organization than
change it
substantially.”
Kevin Kelly, Out of Control
“Acquisitions are about
buying market share.
Our challenge is to
create markets. There
is a big difference.”
Peter Job, CEO, Reuters
“Our ideal acquisition is a small
startup that has a great
technology product on the
drawing board that is going to
come out in six to twelve months.
We buy the engineers and
the next generation
product. …”
John Chambers, Cisco
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
The [New] Ge Way
DYB.com
“Change the
rules before
somebody else
does.”
Ralph Seferian, VP, Oracle
“It used to be that the big
ate the small. Now the
fast eat the slow.”
Geoff Yang, IVP/ (Institutional
Venture Partners)
The Gales of Creative Destruction
+29M = -44M + 73M
+4M = +4M - 0M
Brand Inside
Brand Org:
Lean, Linked,
Electronic & Malleable
Headline: “Bank of America to Cut
… 10,000 Jobs”
“Middle-level
and senior
managers are expected to be
the principal targets of the job
cutbacks.”
Source: The New York Times (07.29.2000)
108 X 5
vs.
8 X 1*
* 540 vs. 8
And Now the Equivalent …
White Collar
Revolution!
The Pincer 5
“Destructive” entrepreneurs/ Global
Competition
“White Collar Robots”
THE INTERNET!
[E.g.: GM + Ford + DaimlerChrysler]
Global Outsourcing
[E.g.: India, Mexico]
Speed!!
“A bureaucrat is an
expensive
microchip.”
Dan Sullivan, consultant and
executive coach
“More and more companies these
days want to be like Cisco. They
want to focus on their core
business and outsource all the
superfluous stuff, like human
resources, procurement and
accounting.”
Forbes.com, 07.17.00, on ASPs
“Assetless
Company”
John Bryan, CEO, on selling all
Sara Lee’s manufacturing
Cisco, Dell =
Brand-owning companies
who sell Customer
Satisfaction
Source: David Schneider & Grady Means,
MetaCapitalism
“The virtual corporation is
research, development, design,
marketing, financing, legal, and
other headquarters functions with
few or no manufacturing
capabilities – a company with a
head but no body.”
Richard Rosecrance, The Rise of the
Virtual State
“We own all the intellectual
property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
N.W.O.
CEO, $14 Billion Corp.:
80+% on the road;
“ ‘Corporate’ ‘Head’quarters
is in my head and on my
laptop, wherever I happen
to be.”
Richard Rosecrance, The
Rise of the Virtual State:
Wealth and Power in the
Coming Century
Hong Kong:
Prototypical “Virtual State”
83% Service
8% Mfg.
Source: Richard Rosecrance,
The Rise of the Virtual State
“The new dependence on productive assets
located within someone else’s state represents
an unprecedented trust in the integrity and
peacefulness of strangers.”
“In its pure form – an ideal model toward which
many states are tending – the virtual state
carries within it the possibility of an entirely
new system of world politics.”
Richard Rosecrance, The Rise of the Virtual State
“The virtual corporation is
research, development, design,
marketing, financing, legal, and
other headquarters functions with
few or no manufacturing
capabilities – a company with a
head but no body.”
Richard Rosecrance, The Rise of the
Virtual State
“We own all the intellectual
property, we farm out all the
direct labor.”
Jim McDonnell, VP, IBM
“The Futility of Size …
“[Regarding size] the new process of
virtualization fully exerts itself.
Virtualization is the recognition that
territorial size does not solve
economic problems. … Economic
access must become the substitute for
economic domain.”
Richard Rosecrance,
The Rise of the Virtual State
TP: Skill at creating,
exploiting, and exiting
crucial alliances beats
ownership of fixed
assets.
“At the ultimate stage, competition
among nations will be competition
among educational systems, for
the most productive and richest
countries will be those with the
best education and training.”
Richard Rosecrance,
The Rise of the Virtual State
And the Question …
$70,000
“Elementary and high
school teachers should be
rewarded as patient creators
of high-value capital in the
United States and
elsewhere.”
Richard Rosecrance, The Rise of the
Virtual State
“Knowledge becomes obsolete
incredibly fast. The continuing
professional education
of adults is the No. 1 industry
in the next 30 years
… mostly on line.”
Peter Drucker,
Business 2.0 (22August2000)
Brand Inside
Brand Work: The
Professional Service
Firm Model & The
WOW Project
So what will be the
Basic Building
Block of the
New Org?
New Orleans
April 2000:
NAPM
Message: You are
Re-invention
Evangelists!
You are the …
Rock Stars
of the
B2B Age!
Chicago
November 1999:
HRMAC
“support function” / “cost
center” / “bureaucratic
drag”
or …
Are you “Rock
Stars of the
Age of Talent”
Answer: PSF!
[Professional Service Firm]
Department Head
to …
Managing Partner,
HR [IS, etc.] Inc.
Every job done in
W.C.W. is also done
“outside” … for profit!
E.g.: “CROs”/Contract Research Organizations
Covance [7,600 employees in 17 countries]
Quintiles
Parexel
ChemNavigator.com
Etc., Etc., Etc.
Source: Invivo, Start-Up
Credo
“WORK
WORTH
PAYING FOR”
The Raw Material …
The WOW
Project!
“Reward excellent
failures. Punish
mediocre
successes.”
Phil Daniels, Sydney exec
“You really got to me. So
many of our information technology
projects take on a life of their own,
and I know they’ll never end up as
more than ‘mediocre successes.’ ”
CEO, F100 financial
services company (10-98)
Measures
–WOW!
–Beauty!
–Raving Fans!
–Impact!
“Every project we take
on starts with a question:
How can we do what’s
never been done
before?”
Stuart Hornery, CEO, Lend Lease
Characteristics of the “Also Rans”
“minimize risk”
“respect the chain of command”
“support the boss”
“make budget”
Source: Fortune on “most admired
global corporations” (10/26/98)
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Brand Inside
Brand You:
Distinct …
or
Extinct
“The fundamental unit of the new economy is not
the corporation, but the individual. Tasks aren’t
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.”
Thomas Malone and Robert Laubacher
DISTINCT … OR EXTINCT!
“If there is nothing very special
about your work, no matter how
hard you apply yourself, you won’t
get noticed and that increasingly
means you won’t get paid much,
either.”
Michael Goldhaber, Wired
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
Minimum New Work SurvivalSkillsKit2000
Mastery
Rolodex Obsession
Finishing Skills
Entrepreneurial Instinct
Mistress of Improv
Sense of Humor
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
Minimum New Work SurvivalSkillsKit2000
Sense of Humor!
Mastery
Networking Obsession
Finishing Skills
Entrepreneurial Instinct
Master of Improvisation
Intense Appetite for Technology
Groveling Before the Young
Embracing “Marketing”
Passion for Renewal
[Cluetrain Manifesto
Relax!
Have a sense of humor!
Find your voice and use it!
Tell the truth!
Don’t panic!
Enjoy yourself!
Be Brave!
Be curious!
Play more!
Dream always!
Listen up!
Rap on!]
R.D.A.
Rate: 15%?, 25%?
Therefore: Formal “Investment
Strategy”/R.I.P.
[“My ancestors were printers in
Amsterdam from 1510 or so until
1750 and during that entire time
they didn’t have to learn anything
new.”
Peter Drucker, Business 2.0 (08.22.00)]
“You must realize that how you invest your
human capital matters as much as how you
invest your financial capital. Its rate of return
determines your future options. Take a job for
what it teaches you, not for what it pays.
Instead of a potential employer asking,
‘Where do you see yourself in 5 years?’
you’ll ask, ‘If I invest my mental assets with
you for 5 years, how much will they
appreciate? How much will my portfolio of
career options grow?’ ”
Stan Davis & Christopher Meyer, futureWEALTH
Training Y2K
Anytime, anywhere!
Whatever!
Concocted by the employee
[“Training Account”]
“The average knowledge worker
will outlive the average employing
organization. This is the first time
in history that’s happened. … So
the center of gravity of higher
education is shifting from the
education of the young to the
continuing education of adults.”
Peter Drucker, Business 2.0 (08.22.00)
Seminar Y2K/Brand Inside
Message:
Distinct … or
Extinct!
Brand Inside
Brand Talent: The
Great War for Talent
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
“The market’s being divided
up right now. We’re in a
tough competition [with the
U.S. and the U.K.] for
the best brains.”
Gerhard Schroeder, on Germany’s new
tech immigration policy
[Frankfurter Allgemeine/06.02.00]
There is no “talent shortage” …
if …
you are a
GPTW*
*Great Place To Work
The Talent Nine
Obsession!
Greatness!
Performance!
Pay!
Youth!
Diversity!
Women!
Weird!
Opportunity!
1. Obsession
Talent = All Consuming
From “1, 2 or 3” [JW] to …
“Best talent in each
industry segment to build
best proprietary
intangibles” [EM]
Source: Ed Michaels, War for Talent (05.17.00)
“The leaders of Great
Groups love talent and know
where to find it. They revel in
the talent of others.”
Warren Bennis & Patricia Ward Biederman,
Organizing Genius
“We chose not to do a
discounted cash flow
analysis of their future
earnings. We wanted their
talent and we wanted
their intellectual
property.”
Art Reidel, CEO, Pharsight
GE Is a “Talent Machine”
“In most companies the talent review
process is a farce. At GE, Welch and his
two top HR people visit each division for
a day. They review the top 20 to 50 people
by name. They talk about Talent Pool
strengthening issues. The talent review
process is a contact sport. It has the
intensity and the importance of the
budget process at most companies.”
Ed Michaels, War for Talent (05.17.00)
2. Greatness
Only The Best!
Home Depot: 7 new growth initiatives
($20B to $100B in 5-7 years)
Arthur Blank: BEST PERSON IN
THE WORLD TO HEAD EACH
INITIATIVE
E.g.: COO of IKEA to head
international expansion
Ed Michaels, War for Talent (05.17.00)
3. Performance
Up or out!
“We believe companies can increase their
market cap 50 percent in 3 years. Steve
changed 20 of
his 40 box plant managers to put
more talented, higher paid
managers in charge. He increased
Macadam at Georgia Pacific
profitability from $25 million to $80 million in 2
years.”
Ed Michaels, War for Talent (05.17.00)
4. Pay
Fork Over!
“Technically savvy and
innovative people have
become unbelievably
expensive.”
Peter Drucker, Business 2.0/08.2000
[Drucker adds that there’s no reason for
them to be on anyone’s payroll.]
Pursuing the $3 Million Dollar Engineer!
John Chambers
“Gets it”!!
Pentium III 800MHz: $42,893.00/#
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
Pentium III 800MHz: $42,893.00/#
Cisco Engineer: $19,000.00
Hermes Scarf: $1,964.29
Saving Private Ryan on DVD: $874.75
Mercedes-Benz: $18.98
Hot-rolled steel: $0.19
Source: Fortune (3.20.00)
“Top performing companies are
two to four times more likely
than the rest to pay what it
takes to prevent losing
top performers.”
Ed Michaels, War for Talent (05.17.00)
5. Youth
Grovel Before the Young!
“This is the Age of Ageism: The
real innovator’s dilemma isn’t
‘disruptive technologies;’ it’s
the relentless rise of the quasiadolescents who wield them.”
Michael Schrage
“The Triumph of the
Brainiac: In today’s biotech,
dot-com world, nerds
rule, and it all starts in
high school”
Cover story, The New York Times
Magazine (06.04.00)
“A good plant engineer in a paper mill may
create $100K to $300K in value per year. An
outstanding software product developer may
create a product worth $1M to $300M. Talented
people are less likely to wait their turn. We
used to view young people as trainees;
now they are authorities. Arguably this is the
first time the older generation can – and must –
leverage the younger generation very early in
their careers.”
Ed Michaels, War for Talent (05.17.00)
“Talent” and a $2T
enterprise??????
6. Diversity
Mess Rules!
“Where do good new ideas come
from?That’s simple! From
differences. Creativity comes from
unlikely juxtapositions. The best
way to maximize differences is to
mix ages, cultures and
disciplines.”
Nicholas Negroponte
“Diversity defines the health and wealth of
nations in a new century. Mighty is the
mongrel. … The hybrid is hip. The impure, the
mélange, the adulterated, the blemished, the
rough, the black-and-blue, the mix-and-match
– these people are inheriting the earth.
Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
“Capitalism and the conditions for creating wealth have
changed in ways that play to the strengths of hybrid
individuals, organizations and nations. And those that
wish to profit from changing economic conditions must
view hybridity as their first and best option. This bold
claim warrants an explanation. The ability to apply
knowledge to new situations is the most valued
currency in today’s economy. Highly creative people …
are misfits on some level. They tend to question
accepted views and consider contradictory ones. This
appreciation defines the mongrel mentality. Strangers
instinctively question things that natives take for
granted. Many things strike them as odd or stupid. …”
G. Pascal Zachary, The Global Me
7. Women
Born to Lead!
Women and neweconomy
management …
The New Economy …
Shout goodbye to
“command and control”!
Shout goodbye to hierarchy!
Shout goodbye to “knowing
one’s place”!
Women’s Stuff =
New Economy Match
Improv skills
Relationship-centric
Less “rank consciousness”
Self determined
Trust sensitive
Intuitive
Natural “empowerment freaks” [less
threatened by strong people]
Intrinsic [motivation] > Extrinsic
“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
“Boys are trained in a
way that will make
them irrelevant.”
Phil Slater
8. Weird
The Cracked Ones
Let in the Light!
“We are in a
brawl with no
rules.”
Paul Allaire
“Our business needs a massive
transfusion of talent. And talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
What Do We Do with Him?
“He grew his hair long, played
guitar in a rock band, chased
girls, got into trouble. At age 17
he was flogged by his house
master, who described him as
‘the most difficult boy I’ve ever
had to deal with.’ ”
Elect Him Prime Minister
Tony Blair*
*talk/May 2000
“Whoever is the
most impertinent
has the best
chance.”
W.A. Mozart
“Well-behaved
women rarely
make history.”
Anita Borg,
Institute for Women and Technology
Axiom: Never hire
anyone without an
aberration in their
background. (Find the
One Ton Cookie Man!)
9. Opportunity
Make It an Adventure!
“H.R.” to “H.E.D.” ???
Human
Enablement
Department
“Firms will not ‘manage the
careers’ of their employees. They
will provide opportunities to
enable the employee to develop
identity and adaptability and
thus be in charge of his or her
own career.”
Tim Hall et al., “The New Protean Career Contract”
Talent = Brand
Brand Inside
Brand Action:
Getting Started … a
Personal Perspective
Topic: Boss-free
Implementation of
STM /Stuff That
MATTERS!
“This is all I
‘know’ in the
world!”
Tom Peters
I. THE IDEA
Find a
Fellow Freak
Faraway
“4Fs”:
World’s Biggest Waste …
Selling “Up”
Recruit [a/a = 1] Friend [in
the Boondocks]
Skip [Flip off] the Hierarchy!
Recruit [A]nother Friend!
Do Some Cool Shit! Fast!
Surround the Bastards [with
WOW WINS/ results]!
Heart of the Matter
F2F!*
*Freak to Freak …
or K2K [Kook to Kook]
“Lead” customers!
K2K redux!
And for the 6-Person Group??
Send one “Cool Dude” out to
Find Something Cool, work
with a Cool Customer, etc. [The
“Micro-Skunkworks Strategy”]
Create a Personal
University of Weird!
II. THE NUGGET
Do Something.
Do Anything.
Get Going.
Now.
Opportunity ALWAYS Knocks
VFCJ* “Strategy”
*Volunteer For Crappy Jobs
Is It …
Wrestle the damn Safety Manual into line
with the ridiculous new government
regulationsegs?
Or …
A stealth opportunity to address the War
for Talent via … a thoroughgoing review
of how safety and environmental
issues contribute to making this a
Great Place to Work?
Is It …
Fix these bloody customer problems that
have cropped up with the new 2783B?
Or …
A chance to work with a hotshot, young
division GM on …
using the Internet/Internet Speed to revisit
the entire process of how we get customer
input – before and during the fact – into the
heart of the Product Design Process?
Bottom Line …
ANYTHING CAN
BE THE RAW
MEAT FOR YOUR
CRUSADE!
III. THE TOOL
Prototyping Mania!
Culture of Prototyping
“Effective prototyping may be
the most valuable
core competence an
innovative organization can
hope to have.”
Michael Schrage
Think about It!?
Innovation = Reaction to
the Prototype
Michael Schrage
“You can’t be a serious innovator
unless and until you are ready,
willing and able to seriously play.
‘Serious play’ is not an oxymoron;
it is the essence of innovation.”
Michael Schrage, Serious
Play
“Success is the ability
to go from failure to
failure without losing
your enthusiasm.”
Winston Churchill
(as quoted by John Peterman)
Secret:
Creating the …
Rhythm of Prototyping
IV. THE SOFT STUFF 1
Show Up!
Connect!
Engagement!
“You all know all the notes. But
can you make them believe
you? Can you play & convey
like love itself? Abject
despair?”
Source: Ken Silvia, paraphrasing, on Yo Yo Ma’s
Master Class at the World Cello Congress 2000
Message2000
“The point is the
passion!”
Charles Handy
Engagement!
“It was much later that I realized Dad’s
secret. He gained respect by giving it. He
talked and listened to the fourth-grade kids
in Spring Valley who shined shoes the
same way he talked and listened to a
bishop or a college president. He was
seriously interested in who you were
and what you had to say.”
Sara Lawrence-Lightfoot, Respect
V. BOTTOM LINE
The Enemy!
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
Reprise: Brand Inside
The White Collar Revolution & The Web
[Destruction Rules!]
PSF as Building Block
[Work Worth Paying For]
Work Worth Paying For = WOW Projects!
Brand You
[Everybody!]
The Great War for Talent!
Boss-free Implementation of STM! [F2F]
N.W.O.
CEO, $14 Billion Corp.:
80+% on the road;
“ ‘Corporate’ ‘Head’quarters
is in my head and on my
laptop, wherever I happen
to be.”
N.W.O.: Was-Is
•
•
•
•
•
•
•
Pine-paneled Office
•
Address: 1 Big Man Plaza •
Secretary
•
Suit
•
Formal
•
Rank conscious
•
Pretense (“Failures are •
for fools.”)
•
• I love “Yes men”
•
• Self-contained
Seat 9b, Varig 233
Address: Rick@Corp.com
Typing: 60 WPM
Casual M-F
Approachable
We are a HOT Team
Screwing up is as normal
as breathing
I love Misfits!
I love partners
Translation
•
•
•
•
•
•
•
Flexible
Fluid-Shape shifter
Fast [Net speed]
Informal-Peer oriented
Talent Obsessed
Alliance Mania
EntrepreneurialMeritocratic
• Intellectual Property Is All
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Context: “No” to “inevitable
commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule!
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Forces @ Work II
The Commodity Trap
In the Beginning …
“The audit has become a
commodity.”
Big 5 audit partner to TP
Quality Not Enough!
“Quality as defined by few
defects is becoming the
price of entry for
automotive marketers
rather than a competitive
advantage.”
J.D. Power
Quality Not Enough!
“While everything may
be better, it is also
increasingly the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
What’s Special?
“Customers will try ‘low cost
providers’ because the Majors
have not given them any clear
reason not to.”
Leading Insurance Industry
Analyst (10-98)
“We make over three new
product announcements a
day. Can you remember
them?
Our customers can’t!”
Carly Fiorina
“The ‘surplus society’ has a surplus of
similar companies, employing similar
people, with similar educational
backgrounds, working in similar jobs,
coming up with similar ideas,
producing similar things, with similar
prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
“When we did it ‘right’
it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
The “10X/10X
Phenomenon”
10 Times Better/
10 Times Less Different
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 1:
Lead the Customer!
“The customer is a rear
view
mirror, not a guide to the future.”
George Colony, Forrester Research
“If you worship at the throne of the
voice of the customer, you’ll get only
incremental advances.”
Joseph Morone, President, Bentley College
“These days, you can’t succeed as a
company if you’re consumer led –
because in a world so full of so much
constant change, consumers can’t
anticipate the next big thing.
Companies should be idealed and consumerinformed.”
Doug Atkin, partner,Merkley Newman Harty
“Our strategies must be
tied to leading edge
customers on the attack.
If we focus on the defensive
customers, we will also
become defensive.”
John Roth, CEO, Nortel
Lucent Tanks!
Cause(s): (1)
Listening to
BIGGEST, SLUGGISH
customers. (2) Failing to exploit
the Web internally or externally
Source: Business Week (08.07.00)
Message …
Biggest is not always
[often?] most beautiful!
F2F Rules: How’s your
“freaks” portfolio?
“Wealth in this new regime flows
directly from innovation, not
optimization. That is, wealth is not
gained by perfecting the known,
but by imperfectly seizing the
unknown.”
Kevin Kelly, New Rules for the New Economy
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 2:
Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.12.2000/0509AM:
2,337,711,647
2X = 100 days
(Internet traffic)
2X = 9 months
(network capacity)
Source: Red Herring (1-00)
Tomorrow Today: Cisco!
87% of $20B*
(Cisco Connection ONLINE)
Save $500M
(service and tech support)
* = $48,000,000 … per DAY
Oracle: Service Call Center
$300.00 per transaction
to $1.50
Savings: $550,000,000.00
Source: Ralph Seferian, Oracle
[part of O’s $1B saving – on a rev.
base of $9B; $1B addnl this year]
Enron: $400B in annual on-line
trading transactions. [50% total
bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset
transactions [80% of trades]
[Transition to e.Schwab: Rev. fell,
then quickly doubled]
COMMUNITY!/
COMMUNITY
SERVICES!
Tomorrow Today: Cisco!
87% of $20B
(Cisco Connection ONLINE)
Save $500M
(service and tech support)
C.Sat e >> C.Sat H
Customer Engineer
Chat Rooms/Collaborative
Design ($1B “free” consulting)
Cherry Picking
Vertical Markets
Plasticsnet.com: $370B;
sellers pay $5K to $8K for
“storefront”; 5% to 10% cut
Hook: community services
(database, catalogs, forums,
industry job bank, etc.)
B2C Success
“Genuine brand
strength”
“Build community”
Source: Geoffrey Moore
Community …
Somewhat mediated, segmented
chat rooms (must be “managed”/ seeded)
User-friendly technical/ professional info
Industry “intelligence”
Some very timely stuff/ attractors
Hotlinks by the gazillion
(to professional and unrelated stuff)
Expert/ advisor opinions (info, chats, etc.)
Opportunity for users to build
own Web page & create own communities
Cisco’s Secret
Trust (openness to
partners)
CUSTOMER
PERSPECTIVE:
D.I.Y./
CONTROL
Welcome to
D.I.Y. Nation!
“Changes in business processes will
emphasize self service. Your costs as
a business go down and
perceived service goes up
because customers are conducting it
themselves.”
Ray Lane, Oracle
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
Control”
Psych 101:
Strongest Force on Earth?
My need to be in
perceived control
of my universe!
I’net Freedom Manifesto
I AM IN CHARGE HERE!
I CAN DO WHATEVER
I NEED OR WANT TO DO
WHENEVER I WANT
TO DO IT!
I Can Immediately …
Shop for $1,000,000 homes or $1.95 office supplies,
at best price and with best advisors
Manage all my financial dealings
Work with my doc, or world’s best medical experts, or
humble support groups, on any health issue
Recruit talent to help me with any project
Develop professional docs collaboratively, with anyone
Share my ideas with the world
Chat with anyone, anywhere
Research anything
Take a course on any topic, from cooking to software
Stay in touch with my 90 year old mom
Play a gajillion games to while away the time
Amen!
“The Age of the
Never Satisfied
Customer”
Regis McKenna
“The Web enables total
transparency. People with
access to relevant information are
beginning to challenge any type of
authority. The stupid, loyal and
humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Patricia Seybold’s “Basics”:
The E-Customer Bill of Rights
Don’t waste my time!
Remember who I am!
Make it easy for me to order and
procure service!
Customize your products and
services for me!
Source: customers.com
“In the network economy, the
Website becomes the company’s
primary interface to the customer.
The user interface becomes the
marketing materials, store front,
store interior, sales staff and postsales support all rolled into one.”
Jakob Nielsen,
Designing Web Usability
RADICAL
STRATEGIES
REQUIRED
“Where does the Internet rank
in priority?
It’s No. 1, 2, 3,
and 4.”
Jack Welch
GE Power Systems/GEPartsEdge
Was: 2 weeks to analyze a
major generator problem
Is: 1 hour
“One cannot be tentative
about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t
ready’ cannot be allowed. Delay and
you risk being cut out of your own
market, perhaps not by traditional
competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.
**Reinvent our marketspace!
ACT NOW,
ACT FAST,
KEEP ACTING
“It’s better to be first with less
than last with more. Success on
the Web isn’t just about
time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
SUMMARY:
REINVENT
EVERYTHING
Jargon Bath!
Bureaucracy free …
Systemically integrated …
Internet intense …
Knowledge based …
Time and location free …
“Instantly” responsive …
Customer centric …
Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.
Systemically integrated = Whole supply chain
tightly wired/ friction free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass customization enabled = Every product
and service rapidly tailored to client
requirements
WebWorld = Everything
Web as a way to run your business’ innards
Web as connector for your entire supply-demand chain
Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to
“commodity producers”
Web as the scourge of slack, inefficiency, sloth,
bureaucracy, poor customer data
Web as an Encompassing Way of Life
Web = Everything (P.D. to after-sales)
Web forces you to focus on what you do best
Web as entrée, at any size, to World’s Best at Everything
as next door neighbor
ERP + ASP + DBM +
DW + B2B +
Duct Tape.*
*and a vision
“There is no use trying,” said Alice.
“One can’t believe impossible things.”
“I daresay you haven’t had much
practice,” said the Queen. “When I was
your age, I always did it for half an
hour a day. Why, sometimes I’ve
believed as many as six impossible
things before breakfast.”
Lewis Carroll
The Web …
A DREAMER’S
MEDIUM!
“It” is real! It is “Life and Death”!
Dream BIG!
Start Now! Study Hard! Play Hard!
Play Fast! Go on Offence!
Hire great folks! (They ain’t cheap. They are young!)
Don’t cut corners on
infrastructure!
Rem: “Age of the Never Satisfied
Customer”!
We ain’t seen nothin’ yet!
Getting Right Down to
Brass Tacks …
Bricks & Mortar?
Bricks &Clicks?
All Clicks All the time?
#1: ANY IDIOT WHO THINKS
CONSUMERS ARE GOING
TO GIVE UP THE
IN-STORE SHOPPING
EXPERIENCE FOR THE
INTERNET IS JUST THAT.
AN IDIOT.
#2: ANY IDIOT WHO THINKS
WE ARE STILL GOING TO
BE HANGING OUT IN
STORES 15 YEARS FROM
NOW IS JUST THAT.
AN IDIOT.
TP: ANY IDIOT WHO THINKS
THEY KNOW WHICH ONE OF
THE ABOVE TWO
STATEMENTS IS TRUE IS …
THE BIGGEST IDIOT
OF ALL.
“Banking is
necessary. Banks
are not.”
Dick Kovacevich,
Norwest/ Wells
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 3:
Fighting Back via
Systems Integration!
THE CASE
B2B
1999 – 2004: 50X
2004: $7.4 T
Source: GartnerGroup
(per Reuters 1-26-00)
GM/Ford/DaimlerChrysler (02-27)
Covisint
$240B (+$500B)
I.P.O.
Solectron, IBM, Nortel,
Matsushita, Seagate, Etc.
E2Open.com
$700B
B2B = No.1
CarStation (auto-body shops),
ChemConnect (chemicals),
Collabria (commercial printing),
DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical
supplies), Portera (knowledge
workers), Etc., Etc., Etc., Etc.
And …
THE WORLD: Alibaba.com*
200,000 members in 194 countries
*China
Goal?
Drive profits to
zero!*
*Remember AMR and “dynamic pricing.”
“Net Nips Real
Estate Sales Fees”
Headline, p.1B, USAToday 07.05.00*
*Homebytes.com, eHomes.com,
YourHomeDirect.com, etc.
“EAT THIS: FoodGalaxy.com’s
Marty Horn wants to help
‘independent restaurants’ buy
smarter. That’s got the big
distributors mighty stewed.”
Headline, Forbes.com 07.17.00
THE RESPONSE
Message: Racing up the V.A.
Ladder. Doing More & More
… & More & More & More …
for/with the Customer and
the Supply-Demand Chain!
RR on “Assetless” [J.B.] Sara Lee
“The most profitable
businesses in the future will act
as knowledge brokers, linking
insights into what’s available
with insights into the
customer’s individual needs
and preferences.”
“Systems Integrators” Unite
[And Conquer]
Cisco’s winning strategy
[USAToday 07.11]: “Become
the ‘Go-to’ Systems
Provider”
“We want to be the
air traffic
controllers of
electrons.”
Bob Nardelli,
GE Power Systems
“Customer Satisfaction” to
“Customer Success”
“We’re getting better at [Six
Sigma] every day. But we really
need to think about the customer’s
profitability. Are customers’
bottom lines really benefiting from
what we provide them?”
Bob Nardelli, GE Power Systems
GE’s New Six Sigma Approach
Old view: Out of service 9 days. 4
days are transport, which is client
responsibility.
New view: ALL 9 DAYS ARE OUR
RESPONSIBILITY! Why? 9 days =
Client’s World.
Source: Steve Kerr, VP, GE
E.g., United Technologies
UTC/Otis + Carrier: “boxes” to
“integrated building systems”
P&W: boxes to major aircraft
subsystems
Service-Systems Paradox:
Cut & Grow
Automate 75% of “commodity”
service activities
and/but
Add value via people-intensive
“strategic/systems-integration
activities” (E.g.: Could Sun’s service/sysint
business be 60% of revenues?) (Hiring from
PWC, etc.)
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 4:
Design Matters!
And Tomorrow …
“Fifteen years ago companies
competed on price. Now it’s
quality. Tomorrow
design.”
Robert Hayes
it’s
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
Object of Desire!
“Every now and then, a design comes
along that radically changes the way we
think about a particular object. Case in
point: the iMac. Suddenly, a computer
is no longer an anonymous box. It is a
sculpture, an object of desire, something
that you look at.”
Katherine McCoy, Michael McCoy, Illinois Institute of
Technology
Design as Soul
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
meaning of design. Design
is the
fundamental soul of a
man-made creation.”
Steve Jobs
Message: “Great Cool Stuff” Matters.
Great & Cool Trumps
Not-So-Great &
Ho Hum!
Message iMac:
“Great Stuff” Takes
Guts!!
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
[ Design Moments!
Shopping cart =
2X heavy items
Source: Wall Street Journal (11-24-99) ]
Message:
“Services” are Not Intangible!
You “give off” hundreds of
design cues … daily!
YOU ARE A DESIGNER!
T.T.D.s
The next slide is the first of many
“T.T.D.” activities. I.e.: Things To Do,
shorthand forms of training
exercises I use.
Also: Many of these T.T.D. slides, as
well as most of the “Stuff That
Matters” section, have accompanying
Notes. (Use Normal View to access.)
Tom Peters
T.T.D./“Beauty Contest!”
1. Pick one form/ document: invoice,
airbill, sick leave policy, returns claim
form.
2. Rate it on a 1 to 10 scale
(1 = Awful; 10 = Scintillating) on three
dimensions: Beauty, Grace, Clarity.
3. Repeat … every 15 days.
T.T.D./Design “Awareness”!
STEP No. 1:
NOTEBOOK!
[Start recording the awesome
and the awful.]
“Sometimes I have
episodes of wild fury in
rental cars. It’s not road
rage. It’s more like design
rage.”
Susan Casey, www.ecompany.com
Most Recent Entry/06.22.00
The “manual …
HP LaserJet 1100
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 5:
It’s the Experience!
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theatre &
Every Business a Stage
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-based
Leadership
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile. Why?
Because it’s focused. It has a plot, a
reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
T.T.D.
WHAT’S THE
[your] PLOT?
“This is the end of the pure
product era. For instance, car
makers are beginning to
understand that the car is a
platform for delivering services
that drive the customer
experience.”
Carly Fiorina, HP @ Comdex ’99
“This story is bigger than shifting market
share or selling a few more cars, or
dodging the dealer by buying direct.
Rather, it’s about the redefinition of the
automobile itself, and the relationship of its
owner to its maker. Think of the auto as a
rolling wireless portal on wheels,
connecting you to your kitchen, your bank,
your kids, your office.”
Business 2.0, “Four Wheel Drive,” 08.22.00
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 6:
Women Rule!
$4.8T > Japan
9/27.5/3.6T > Germany
?????????
Home Furnishings … 94%
Vacations … 92%
Houses … 91%
Bank Account … 89%
Health Care … 75%
Etc.
48% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
Women … 50+% of Web users;
6 of 10 new users; 83% of
wired women are primary
decision makers for family
healthcare, finances,
education.
Source: Business Week; Jupiter Communications
Yeow!
1970 … 1%
2002 … 50%
OPPORTUNITY
NO. 1!
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.”
“He simply wants the transaction to
take place. She’s interested in creating
a relationship. Every place women go,
they make connections.”
Women and Healthcare
Women are … more dissatisfied,
frustrated by the way they are treated
and spoken down to by physicians,
seek more information, are more pressed
for time … and make 75% of health care
decisions and control 2/3 of health care
$$$$ [and constitute 2/3 of health care
employees].
Source: Patricia Braus, Marketing Healthcare to Women
Women and Financial Advisors
Women want … a plan, to be
listened to, to be taken seriously,
to read about it, to think about it.
Women do not want … an
in-your-face sales pitch
Source: Kathleen Boyle, Wheat Boyle Butcher Singer
Not!!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/ Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“What kind of car does
Mommy want?”
“I didn’t know
[company] were giving
company cars to
secretaries.”
Source: UK financial services CEO,
12/99
Not a Morality Play!
“It is critical that we all understand
that IBM is not marketing to women
entrepreneurs because it is the thing
to do, or even the right thing to do.
We are marketing to women
entrepreneurs because it is a huge
opportunity.”
Cherie Piebes
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd more money than my
husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say
this is also true of most of my women
friends. Someone should wake up, smell
the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
Psssst! Wanna
see my
“pornography”
collection?
THIS JUST MIGHT
BE THE BIGGEST
“THING” IN THIS
SEMINAR. [PLEASE:
THINK ABOUT IT!]
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of SelfDetermination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 7:
Embracing an
Age of
Self-Determination
“We are in a
brawl with no
rules.”
Paul Allaire
The [New] Ge Way
DYB.com
The Individual
“The fundamental unit of the new economy is not
the corporation, but the individual. Tasks aren’t
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.”
Thomas Malone and Robert Laubacher
DISTINCT … OR EXTINCT!
“If there is nothing very special
about your work, no matter how
hard you apply yourself, you won’t
get noticed and that increasingly
means you won’t get paid much,
either.”
Michael Goldhaber, Wired
Credo
“WORK
WORTH
PAYING FOR”
You are the …
Rock Stars
of the
B2B Age!
“You are the storyteller
of your own life, and you
can create your own
legend or not.”
Isabel Allende
The Work
Enter …
The WOW
Project!
Recruit [a/a = 1] Friend [in
the Boondocks]
Skip [Flip off] the Hierarchy!
Recruit [A]nother Friend!
Do Some Cool Shit! Fast!
Surround the Bastards [with
WOW WINS/ results]!
Epitaph from Hell …
Joe T. Jones
1942 - 2000
HE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HIS BOSS WOULDN’T LET HIM!
Ann Richards’ Dogma
Show up!
Know your story!
Put yourself at risk
every day!
The
Organization:
Seller’s [Talent]
Market
“When land was the scarce
resource, nations battled
over it. The same is
happening now for
talented people.”
Stan Davis & Christopher Meyer,
futureWEALTH
“A good plant engineer in a paper mill may
create $100K to $300K in value per year. An
outstanding software product developer may
create a product worth $1M to $300M. Talented
people are less likely to wait their turn. We
used to view young people as trainees;
now they are authorities. Arguably this is
the first time the older generation can –
and must – leverage the younger
generation very early in their careers”
Ed Michaels, War for Talent (05.17.00)
Dudes With ’Tude
“Our business needs a massive
transfusion of talent. And talent, I
believe, is most likely to be found
among non-conformists,
dissenters and rebels.”
David Ogilvy
“Diversity defines the health and wealth of
nations in a new century. Mighty is the
mongrel. … The hybrid is hip. The impure, the
mélange, the adulterated, the blemished, the
rough, the black-and-blue, the mix-and-match
– these people are inheriting the earth.
Mixing is the new norm. Mixing trumps
isolation. It spawns creativity, nourishes the
human spirit, spurs economic growth
and empowers nations.”
G. Pascal Zachary, The Global Me: New
Cosmopolitans and the Competitive Edge
The Market:
Fighting
Sameness with
Distinction
Quality Not Enough!
“While everything may
be better, it is also
increasingly the same.”
Paul Goldberger on retail, “The Sameness
of Things,” The New York Times
Web World:
POWER TO
THE PEOPLE
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age
of Customer
Control”
“The Web enables total
transparency. People with
access to relevant information are
beginning to challenge any type of
authority. The stupid, loyal and
humble customer, employee, patient
or citizen is dead.”
Kjell Nordstrom and Jonas Ridderstrale,
Funky Business
Women Get
Respect … and
Take Charge
$4.8T > Japan
9/27.5/3.6T > Germany
The Patient Gets
Respect … and
Takes Charge
“Partner for Good Health”
vs.
“Savior for the Sick”
Source: NPR/VPR 08.15.00
“Medicine looks likely to
change more in the next
20 years than it has in
the last 200.”
British Medical Journal (11-11-99)
“Online Medical Records
Seen Empowering
Patients”
Source: Headline, Boston Globe,
07.31.2000, re 1K docs and 700K
patients @ CareGroup
Patient-centric* Health Care
Wellness (Fix to prevent.)
Partnership (“Tour guide” model.)
Web (Info and support group availability
RESPECT! (Mutual.)
WOMEN RULE!
*Not: HMO-centric, Employer-centric, Insurercentric, Doc-centric
The Poor Get
Respect
Grameen Bank/Bangladesh
“It’s not people who aren’t creditworthy. It’s banks that aren’t
people worthy.”
$2.3B to 2.3M [typical 1st loan: $15.]
98% recovery rate [94% to women!]
1/3rd out of poverty; 1/3rd up to nonpoverty threshold
Muhammad Yunus, Banker to the Poor
MBWA, Grameen Style!
“Conventional banks ask their clients to come
to their office. It’s a terrifying place for the poor
and illiterate. … The entire Grameen Bank
system runs on the principle that people
should not come to the bank, the bank should
go to the people. … If any staff member is seen
in the office, it should be taken as a violation of
the rules of the Grameen Bank. … It is essential
that [those setting up a new village Branch]
have no office and no place to stay. The reason
is to make us as different as possible from
government officials.
Grameen Bank: “Borrowing Group”
Self-formed. 5 members. Oral test. Group
approves all loan requests, but individual liability.
(8 Groups to a “Center.”)
Weekly payment, 1-year loan (5% to Group Fund.
If one defaults, no more loans to Group).
No legal instrument.
1st loan about $15 (housing loan after 3 successful
1-year loans; property to wife’s name).
Lend to two, then six weeks later two more,
Chairman last.
Process aims to exclude non-resilient people.
“The Grameen loan is
not simply cash. It
becomes a kind of ticket
to self-discovery and
self-exploration.”
Muhammad Yunus
Sooooo …
Is your strategy centered
around customer-client
empowerment & selfdetermination?
Hint: This means letting go
of traditional sources of
power!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 8:
Think Global!
THE EIGHT
“RULES”
Rule #1
If “it” is [truly] good
… then it’s good
enough for …
THE WORLD.
Rule #2
There’s no such
thing as “too small to
be global.”
[GET A LIFE.]
Rule # 3
When?
Now.
Rule #4
Hang out …
vigorously!
Rule #5
Seek Talent!
Send Talent!
Rule #6
Glom onto a
[modest-sized]
partner … who
loves/ “gets” you!
Rule #7
Tailor!! [But don’t give
away the store.]
Rule #8
Phil Crosby
notwithstanding,
you’ll not [likely] “get
it right the first time”!
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Brand Outside
Strategy 9 & Summary:
BRAND POWER!
Brand It!
Now, More Than Ever!
“The increasing difficulty in
differentiating between products and
the speed with which competitors take
up innovations will assist in the rise
and rise of the brand.”
Gillian Law and Nick Grant,
Management [New Zealand]
Scott Bedbury/ Nike, Starbucks
“A Great Brand taps into emotions. Emotions drive
most, if not all, of our decisions. A brand reaches
out with a powerful connecting experience. It’s an
emotional connecting point that
transcends the product.
“A Great Brand is a story that’s never completely
told. A brand is a metaphorical story that
connects with something very deep - a
fundamental appreciation of mythology.
Stories create the emotional context people need
to locate themselves in a larger experience.”
“We are in the twilight of a society based on data. As
information and intelligence become the domain of
computers, society will place more value on the one
human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions
Companies will
thrive on the basis of their stories and
myths. Companies will need to understand that
to how we work with others.
their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“Corporate Religion is a completely new way
of thinking about companies. Today, the
product is still the main communication
highway in the company. When companies
make the shift to selling solutions, brands and
attitudes … communicating the company’s
attitudes and values becomes the
decisive parameter for success. It
demands that you find out who you are
as a company.”
Jesper Kunde, Corporate Religion
Brand = You Must Care!
“Success means never letting
the competition define you.
Instead you have to define
yourself based on a point of
view you care deeply about.”
Tom Chappell, Tom’s of Maine
T.T.D./Assignment Y2K
Write an essay on
“Who we are.”*
* Jesper Kunde, Corporate Religion
T.T.D.: “How can I know what I
think till I see what I say”*
Exercise : Write copy for
a bookmark! (Etc.)
*Graham Wallas, The Art of Thought
Brand Outside
Reprise
Context: “No” to “inevitable commoditization”
S1: Lead the Customer!
S2: Re-invent with E-Commerce!
S3: Fighting Back via Systems integration!
S4: Design Matters!
S5: It’s the Experience!
S6: Women Rule! (and the elderly)
S7: Embracing an Age of Self-Determination!
S8: Think Global!
S9: Brand Power & Summary!
Lead the Customer: Why Tough
Guts!
Failures!
Re-invention via ecommerce:
Why Tough
Total commitment to total
enterprise [and supply
chain] reinvention!
Systems Integration: Why Tough
Completely new view of
what a “product” is.
Design: Why Tough
True-believer-dom-ship
Encompassing/Cultural
Experience: Why Tough
Total
Reorientation
Women’s Market: Why Tough
Encompassing
Attitude
CULTURAL!
Self-Determination: Why Tough
Cede Control
Going Global: Why Tough
Attitude!
Patience!
Brand Power: Why Tough
Way of Life
Forever!
Passion Rules!
Touches Everything!
It Am Me [Personal!]
Message :
Not for the Faint
of Heart!
Part I: Brand Inside
Part II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
Brand Leadership!
“A key – perhaps the key –
to leadership is
the effective
communication
of a story.”
Howard Gardner
Leading Minds: An Anatomy of Leadership
“The challenge for IBM, AT&T and
other mainstream companies is to
re-instill a sense of adventure in
recruits.”
Burke Stinson, AT&T
“Create a Cause, not
a ‘business.’ ”
Gary Hamel, Fortune (06.00), on reinventing a company (Exemplar #1:
Charles Schwab)
Talent “War,” Marketplace “War”
“The successful company has to
create an environment that imbues
its employees with a sense of
passion.”
Joe Nocera, eCompany, on David Pottruck
“Leadership is a
performance. You have to be
conscious of your behavior,
because everybody else is.”
Carly Fiorina
“It is necessary for the
President to be the
nation’s No. 1 actor.”
FDR
Brand Leadership:
ENTHUSIASM RULES!
“I am a dispenser of
enthusiasm.”/ Ben
Zander